Dr. William A. Bennett, a podiatrist, practices at Bay Area Foot Clinic, located at 1890 Waite St. in North Bend. World Photo by Madeline Steege

PORTLAND - State and federal prosecutors announced health care fraud charges Tuesday against five Oregon defendants, ranging from a large medical business to a Bay Area podiatrist.

"We are here to present a strong message to health care providers who steal from Oregonians," U.S. Attorney Karin J. Immergut said at a news conference.

Four defendants pleaded guilty after waiving indictment, Immergut said. She said the government has recovered civil damages of about $2.5 million, double the amount fraudulently gained. Some defendants could face prison time as well.

West Coast Medical Supply of Portland billed Medicare for nearly 200 motorized wheelchairs but often provided less-expensive motor-powered scooters instead, Immergut said, adding that in some cases it had not been determined that either was a medical necessity.

The company will pay $2.07 million and be excluded from taking part in federal health plans, she said. Company president Efiong Okon could face five years in prison for receiving Medicare kickbacks.

Immergut said Family Medical Management Services Inc., which operates clinics in Oregon and Washington, settled for $400,000 in penalties and suspension from federal health plans until 2010 after billing beneficiaries of Medicare and TRICARE, a plan for families of active duty military personnel, for services attributed to doctors but performed by a nurse practitioner, whose services normally are billed at a lower rate.

She said Family Medical was responsible for nearly $200,000 in fraudulent billings.

Family Medical administrator Sherrie Day pleaded guilty to two charges of health care fraud and could face five years in prison, Immergut said.

She said William A. Bennett, owner of the Bay Area Foot Clinic at 1890 Waite St. in North Bend, pleaded not guilty to charges that he falsified medical records and made false claims for Medicare payments.

Prosecutors contend that in one case Bennett claimed payment for a surgical foot procedure for removing dead tissue from ulcers and wounds, known as "debridement," when all he did was clip the patient's toenails. He could face five years in prison and a $250,000 fine if convicted.

The investigation included the FBI, the Department of Health and Human Services and the Department of Defense Criminal Investigation Service.

Immergut said Americans will spend about $1.9 trillion on health care costs this year and that by some estimates 10 percent of the charges will be fraudulent.

Also at the press conference was Oregon Attorney General Hardy Myers, who said that especially in tight budget times health care fraud keeps medical care from people who really need it.

Through a receptionist at his clinic, Bennett declined comment on the charges this morning. A message left with his Portland-based attorney, Norman Sepenuk, was not immediately returned.

According to records from the Oregon Board of Medical Examiners, Bennett received his Oregon medical license in January 1996 and currently has "unrestricted" standing to practice podiatry in the state. He has practiced locally in the Bay Area, Coquille and Reedsport, since 1997.

- Staff Writer Howard Yune contributed to this report.