Company Pleads Guilty To Rigging City Physical Exams
CHICAGO (STMW) - An insolvent medical testing company cut a deal with federal prosecutors Friday, agreeing to plead guilty to fraud charges for rigging physical exams that were given to more than 10,000 applicants to the Chicago Police and Fire departments.
U.S. Occupational Health faces probation and a fine of up to $1.8 million under federal sentencing guidelines. But Steve A. Miller, attorney for U.S. Occupational Health, told U.S. District Judge James Zagel the company is insolvent and unlikely to pay any fine or restitution.
The deal prohibits the government from prosecuting anyone else, including the owner of the company, Dr. Barry Fischer, 66, of River Forest, also the company's sole director.
Miller noted that the city has withheld payment of nearly $600,000 to U.S. Occupational Health -- the value of the tests conducted between 1999 and 2005.
"There may be no loss to the city when the accounting is done," Miller said.
Miller argued that Fischer was an internist who was qualified to review the results of the tests, which included X-rays, electrocardiograms and heart exams.
Still, the contract required U.S. Occupational Health to have board-certified specialists review every test.
"Shortcuts were taken," Miller said. "There was great pressure to get these candidates passed."
Sometimes, Fischer would review the results himself and certify an applicant as fit for duty. In those cases, the company fraudulently used signature stamps of board-certified specialists to make it look as if they actually reviewed the results, prosecutors said.
Other times, Fischer would spot a potential problem and refer the results to a board-certified specialist.
Miller said he was unaware of any cases in which an unfit candidate was approved for duty.
But the city's former inspector general, David Hoffman, has said the company passed applicants with abnormal electrocardiograms and lung capacities and re-examined some who failed vision and hearing tests until they passed.
The city retested hundreds of employees after the fraud was discovered. City officials said possible health problems were found in dozens of employees, and some of them would be moved to less strenuous jobs.
In 2009, the state suspended Fischer's physician and surgeon license for three months and fined him $5,000 for unprofessional conduct. He was placed on probation for a minimum of five years. He is continuing to practice medicine, Miller said.
The city has sued Fischer and U.S. Occupational Health in Cook County Circuit Court. The case is pending.
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