Southern Maine Doctor Sentenced for Tax Evasion, Illegal Drug Distribution & Health Care Fraud

A doctor from Falmouth was sentenced for evading taxes, distributing drugs for other than legitimate purposes and health care fraud. The 69-year-old received a sentence of two years in prison and three years of supervised release. 

Dr. Joel A. Sabean will have to pay over $5,000 in restitution, fix and amend his tax returns and pay appropriate taxes.

The case involves $2.3 million sent to a relative in Florida who would falsify medical bills, according to the Department of Justice and court records. Sabean also invalid prescriptions he gave to relatives who did not have a medical exam, according to the Department of Justice and court records.

Press Release: Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Dr. Joel A. Sabean, 69, of Falmouth, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to two years in prison and three years of supervised release for tax evasion, drug distribution for other than legitimate purposes, and health care fraud.  He was also ordered to pay $5,311 in restitution, file amended tax returns and pay all outstanding tax obligations.  He was convicted following a two-week jury trial on November 18, 2016.

According to court records, between January 2008 and December 2013, the defendant sent over $2.3 million to a relative who resided in Florida and had her fabricate and send him phony medical bills so that he could write off about $3 million in medical expenses on his 2008 through 2012 income tax returns. From 2007 through 2014, the defendant also wrote invalid prescriptions for the relative, in her name and the names of others, for controlled and non-controlled drugs, some of which were illegally reimbursed by the defendant’s insurance company that did not cover the relative. These prescriptions were invalid because, among other things, they were issued to a close family member who was not a patient without a medical examination.

This case was investigated by the Internal Revenue Service, Criminal Investigations and the U.S. Drug Enforcement Administration, Portsmouth (NH) Tactical Diversion Squad.