Pennsylvania oral surgeon to pay $46K to avoid healthcare fraud case

A former oral surgeon at Lehrian & Palo Oral Surgery in Erie, Pa., has agreed to enter a pretrial diversion program and pay nearly $47,000 to avoid ongoing prosecution in federal court, according to

David Palo, DDS, was indicted by a federal grand jury in July 2016 on one count of healthcare fraud and 26 counts of making false statements on healthcare matters. Prosecutors claim Dr. Palo overbilled insurance companies more than $232,674 for 26 tooth extractions.

By entering into the pretrial diversion program, Dr. Palo does not have to plead guilty. The program includes one year of supervision. Dr. Palo has also agreed to pay $46,787 in restitution to the insurance companies he allegedly defrauded.

Senior U.S. District Judge David Corcone is expected to approve the agreement March 3.

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