United States Attorney's Office

Northern District of Florida

October 12, 2007
FOR MORE INFORMATION CONTACT:
Managing Asst. U.S. Attorney Dixie A. Morrow
(850) 444-4000

TALLAHASSEE -- Gregory R. Miller, United States Attorney for the Northern District of Florida announced that Rhonda Fenwick (48), the office manager for former Panama City "pain management" physician John Q. Durfey, was sentenced yesterday afternoon to eighteen months' imprisonment on three counts of health care fraud.
Fenwick pled guilty on July 25, 2007, before United States District Judge M. Casey Rodgers, to three counts of health care fraud, arising from her participation in a scheme in which Fenwick and her co-defendant, Dr. John Durfey, submitted false claims to health care benefit programs for payment for medical services that were never provided.

At sentencing yesterday, Judge Rodgers also ordered Fenwick to serve a period of three years' supervised release upon her release from federal prison, to pay a special assessment of $300 to the United States, and to pay restitution in the amount of $466.03 to Medicare, Tricare, and BlueCross BlueShield of Florida.

The eighteen month sentence imposed by the Court exceeded the 0 to 6 month range recommended by the federal sentencing guidelines. In imposing sentence, Judge Rodgers stated that the recommended sentence under-represented Fenwick's conduct. Judge Rodgers found a number of aggravating factors warranting a significant prison term: Fenwick assisted co-defendant Durfey in the improper over-prescribing of narcotics; Fenwick provided narcotic prescriptions to patients without co-defendant Durfey seeing the patients; Fenwick mailed numerous controlled substance prescriptions to patients; and Fenwick was aware that numerous patients were abusing their medications because most of the urine toxicology reports indicated problems with the prescribed medications. The Court also noted that Fenwick had lied to investigating agents about the conduct of the Durfey medical practice in the early stages of the investigation.

In October 2005, a federal search warrant was executed at the medical office of Durfey located at 1937 Harrison Avenue, Panama City, Florida, and evidence was seized by federal and state agents. In December 2006, following an extensive criminal investigation, Durfey and Rhonda Fenwick, were indicted on conspiracy, unlawful dispensing of controlled substances, mail fraud, and health care fraud charges. On May 30, 2007, Durfey appeared before Judge Rodgers and pled guilty to six counts of health care fraud and six counts of dispensing controlled substances outside the normal course of professional practice. On August 30, 2007, Durfey was sentenced to 20 years' imprisonment on the charges.

This successful prosecution is the result of a joint Federal/State North Florida Health Care Fraud Task Force investigation that involved the Federal Bureau of Investigation, the Drug Enforcement Administration, the Defense Criminal Investigative Service, the National Drug Intelligence Center, the Florida Department of Law Enforcement, the Florida Attorney General's Office Medicaid Fraud Unit, the Florida Department of Financial Services - Fraud Division, and the Florida Department of Health.

United States Attorney Miller commended the tireless efforts of investigators in this complex case, and praised the cooperation of citizens and pharmacists who alerted investigators to excessive prescribing of highly addictive controlled substances by Durfey. United States Attorney Miller stated that, "the protection of citizens in the community from licensed doctors and their staff who dispense highly addictive controlled substances, such as OxyContin, outside the usual course of professional practice is a primary concern of health care fraud investigations. The North Florida Health Care Task Force will vigorously investigate and identify those medical practitioners who use their licenses to peddle controlled substances to abusers and addicts outside the course of standard medical practice. This conduct, along with the theft of public funds and fraud committed against the taxpayers and health care benefit programs, remains a priority with the Department of Justice."

Special Agent In Charge of the Florida Department of Law Enforcement, Jim Madden, stated "This case represents the effect of good working relationships between law enforcement agencies in the Northern District, and a commitment to reducing the illicit supply of controlled substances from all sources."

For further information, please contact Alan Sprowls at (850) 942-8430