Apple Medical Clinic and its principal, Dr. Michael Johnson, have agreed to pay $382,362.95 to the United States to resolve allegations that they violated the False Claims Act by causing the submission of false claims to Medicare for services that were not medically necessary. The announcement was made by Brad D. Schimel, First Assistant U.S. Attorney for the Eastern District of Wisconsin on Apr. 17.
The case concerns treatments offered at Apple Medical Clinic in Appleton, Wisconsin involving electric stimulation devices and vitamin injections that were advertised as covered by Medicare but were not eligible for coverage under federal guidelines. This settlement reflects ongoing efforts by federal authorities to address fraudulent billing practices and ensure proper use of public healthcare funds.
According to prosecutors, Dr. Johnson promoted outpatient pain treatments using the RST Sanexas neoGEN-Series device along with vitamin blend injections and other ancillary services such as epidermal nerve fiber density testing. These protocols were designed without regard for medical necessity and contrary to National Coverage Determination 160.7.1, which excludes electrical nerve stimulation treatments from Medicare coverage when furnished in a physician’s office or outpatient clinic.
Dr. Johnson also served as a major national distributor of the Sanexas device and marketed it beyond its approved uses set by the Food and Drug Administration (FDA) and against established coverage determinations.
RST-Sanexas Inc., manufacturer of the device used at Apple Medical Clinic, previously resolved similar False Claims Act allegations through a separate agreement requiring payment of $1.5 million as part of broader enforcement efforts targeting electrical stimulation fraud nationally.
The matter was managed locally by Assistant U.S. Attorneys Lisa Yun and Michael Carter in coordination with several Justice Department divisions across Pennsylvania and Wisconsin as well as investigative support from Health and Human Services’ Office of Inspector General.
The U.S. Attorney for the Eastern District of Wisconsin is a federal prosecutorial entity responsible for handling federal prosecutions in this region; it partners with law enforcement agencies at all levels—including tribal organizations—to enhance community safety according to their official website (official website). The office manages locations in Milwaukee and Green Bay while contributing broadly through public service efforts across Eastern Wisconsin (official website).
Looking ahead, authorities say these settlements reflect continued vigilance against health care fraud while ensuring impartial justice throughout Eastern Wisconsin (official website).
