Attorney General Marty Jackley announced today that an optometrist who practiced in Rapid City plead guilty to two felonies involving Medicaid fraud. Cary Stephen Feldman, OD, 60, Spearfish, entered a guilty plea to grand theft by deception, class 4 felony, punishable by up to ten years imprisonment and/or a $20,000.00 fine, and making false claims, class 5 felony, punishable by up to five years imprisonment and/or a $10,000.00 fine.
This change of plea hearing was the result of a plea agreement with the Attorney General's Office. As part of the agreement, Feldman agreed to pay restitution in the amount of $362,457.90 to South Dakota's Medicaid program, and $592.00 to the federal Medicare program.
Feldman admitted in open court that he knowingly and intentionally submitted false claims to the South Dakota Medicaid program and to Medicare. Feldman admitted that he submitted claims to Medicaid and to Medicare for consultation services, even though he had not provided such services. Feldman began submitting the false claims in late 2008, and continued until early 2012.
In a related case, Feldman's former optometric assistant, Robin L. Lamb, 50, Spearfish, plead guilty on August 20, 2012, in Lawrence County to one count of failure to keep records, class 1 misdemeanor. Lamb also agreed to pay $35,000.00 in restitution to the State. Lamb received a suspended imposition of sentence.
Feldman is scheduled to be sentenced on December 3, 2012.
The case is being prosecuted by the Attorney General's South Dakota Medicaid Fraud Control Unit with assistance from the South Dakota Department of Social Services, United States Department of Health and Human Services Office of Inspector General, Division of Criminal Investigation, Spearfish Police Department, Rapid City Police Department, Pennington County Sheriff's Office, Pennington County States Attorney, Minnehaha County Sheriff's Office, and South Dakota Office of United States Attorney.