Dr. Kenneth Ferguson, a physician of record at Huntington Beach Medical Center which operated from July through October 2004 was indicted by a federal grand jury in Santa Ana, California along with his employee Olena Kulakova for health care fraud. According to the allegations, Dr. Ferguson and his employee Kulakova would bill Medicare for physician services for care rendered to patients by Kulakova. Kulakova had no medical license in the State of California even though she held herself out to be either a doctor or a physician’s assistant. Both Dr. Ferguson and Kulakova caused Medicare to be billed for comprehensive evaluation and management visits for patients even though face time with patients lasted only 5 to 10 minutes as opposed to the usual 25 to 45 face to face time with a patient. In addition, it is alleged that both Dr. Ferguson and Kulakova directed and caused kickbacks to be paid to patients to come to the Huntington Beach Medical Center for Services.
Both defendants face a maximum of 100 years in federal prison and fines in excess of $2,000,000 if convicted.