Jefferson Co. (KFMO) - The 25th patient of a Jefferson County, Missouri, chiropractic office involved in a massive disability fraud scheme has been sentenced as part of an ongoing federal investigation. Donald Furrer, 67, received a one-year probation sentence from U.S. District Judge Stephen R. Clark. Furrer also repaid nearly $462,000 in fraudulently obtained disability benefits from the Social Security Administration’s Disability Trust Fund and private insurers.
The fraud was orchestrated by chiropractors Thomas G. Hobbs and Vivian Carbone-Hobbs, owners of PowerMed Inc. Both are currently serving four-year federal prison terms. Hobbs was ordered to repay $4.3 million, while Carbone-Hobbs faces a $16.4 million restitution order. Two PowerMed employees also faced penalties: Christina Barrera was sentenced to 14 months in prison, and Clarissa Pogue received five years of probation, including six months of house arrest.
Investigators revealed that Hobbs charged patients thousands of dollars in fees to fabricate disability claims and coached them on how to lie about their physical capabilities. Patients were given a “Disability Package Pricing” sheet outlining fees as high as $13,000 for assistance with claims involving Social Security disability, private insurance, and loan forgiveness. Hobbs also falsely claimed to hold a medical license, submitting fraudulent reports to support these claims.
Despite their claims of being disabled, patients were found traveling, hiking, dancing, and even riding roller coasters. Some used the money to purchase new or additional homes.
In addition to patient convictions, former Anheuser-Busch union steward James Ralston was sentenced to five years of probation and ordered to repay $2.1 million for referring co-workers to the scheme and coaching them on falsifying claims.
The investigation has led to 31 convictions and the recovery of over $6 million for the Social Security Administration and private insurers. Six more patients are scheduled for sentencing next year.
“This investigation is ongoing,” said U.S. Attorney Sayler A. Fleming. “But it has already resulted in significant recoveries for defrauded agencies and insurers.”
FBI Acting Special Agent in Charge Greg Heeb highlighted the importance of prosecuting such cases, saying, “When individuals lie to obtain disability benefits, they take resources away from those who truly need them.”