Case Result: Kentucky Pain Physican "Pill Mill" Allegations Found Not Guilty

United States of America v. Loey Kousa, M.D., 7:22-cr-00008-REW-EBA-1

U.S. District Court for the Eastern District of Kentucky

Pain Management Specialist

Primary Issue:
Nearly a year after the DEA began an undercover operation into Kentucky pain physician, Dr. Loey Kousa’s practice, his office was swarmed by federal and state officers on the pretense of pill mill allegations. The DEA was accusing the 30-year doctor of not performing a physical examination before prescribing low doses of Ultram, a medication that has not always been considered a controlled substance, and Hydrocodone.

When a federal indictment built upon five counts of Unlawful Distribution of Controlled Substances (21 U.S.C. § 841(a)(1)) was slapped on Dr. Kousa, he instantly retained Chapman Law Group’s White Collar Defense team. Along with the “pill mill” accusations, the indictment also listed two counts of Health Care Fraud (18 U.S.C. § 1347) and two counts False Statements Relating to Health Care Matters (18 U.S.C. § 1035(a)(1) & (a)(2)).

After having the trial start date rescheduled twice, White Collar Practice Chair Ronald W. Chapman, II, LL.M. and White Collar Attorney Matthew J. Pelcowitz flew to Kentucky to fight the Government’s unsubstantiated claims against Dr. Kousa.

Attorneys Chapman and Pelcowitz called physicians from Paul B. Hospital and a plethora of patients, including one who is a practicing pharmacist, to testify in support of Dr. Kousa and his standard of care. The Health Care Fraud attorneys also called specific experts to round out their defense for their client:

  • James Murphy, M.D., FASAM, a certified Addition, Anesthesiology, and Pain Medicine expert.
  • Sean Weiss, CHC, a Compliance expert certified in Professional [Medical] Coding, Professional Medical Auditing, Evaluation & Management Auditing, and Mission Critical Operating. 
  • Michael Staples, a Certified Medical Board Investigator, who specializes in Compliance of health care practices.

Accompanying their experts, Attorneys Chapman and Pelcowitz unraveled the undercover DEA agent. During the cross examination, it came to light that the agent was not aware of the DEA’s restrictions when he began his undercover investigation. Ironically, he also admitted that Dr. Kousa had exceeded the DEA requirements prior to prescribing the low doses of the controlled substances to ease the agent’s fake pain.

The Government spent four days presenting its case for the pain physician pill mill allegations, but it was filled with holes: Dr. Kousa had no past complaints or suspensions from the state medical board, no history of over-medicated patients, and no prior audits from insurance companies.

After the defense spent two days prying the holes in the Government’s case open even further, both sides presented their closing arguments before the court dismissed the jury to begin deliberation.

It only took one day for the jury to come back with a verdict: Dr. Kousa was found Not Guilty on all nine counts.

Area of Law:
Unlawful Prescribing or Dispensing
Pain Management Criminal Defense
Health Care Fraud
DEA Matters

Ronald W. Chapman, II, LL.M.

Matthew J. Pelcowitz

Disclaimer: This information is a sample of our past results. Prospective clients may not obtain the same or similar results. Every case is different and each case must be evaluated and handled on its own merits. The circumstances of your case may differ from the results provided. The information provided has not been reviewed or approved by the State Bar.

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