LEXINGTON – The judge has recused himself from a federal case concerning health care fraud and conspiracy to distribute controlled substances.
As some background, on February 2, a federal grand jury in United States District Court Eastern District of Kentucky Central Division, in Lexington, released an indictment against Dr. Jose Alzadon, Kristy Berry, Michael Bregenzer and Barbie Vanhoose, alleging they submitted fraudulent Medicare and Medicaid claims for health care services they did not perform or services that had been “upcoded” or billed at a higher level than warranted for the visit, as well as distributed quantities of a controlled substance, including Suboxone, in a manner they knew was unauthorized.
According to the indictment, Kristy Berry, formerly from Magoffin County, and Michael Bregenzer were owners of Kentucky Addiction Centers, with Dr. Jose Alzadon as a licensed medical doctor working at the KAC clinics to treat patients for opioid addiction. Barbie VanHoose was a billing manager for KAC. The 13 charges listed in the indictment referenced events that allegedly occurred from October 2017 through April 2022 in Johnson and Clark counties.
On February 10, United States District Court Eastern District of Kentucky Chief Judge Danny C. Reeves filed an order recusing himself from the case and ordering that it be reassigned via a random draw to another judge assigned to accept criminal cases in Lexington.
A jury trial for Dr. Alzadon is tentatively slated for April 11 at 10 a.m. in Lexington.
A notice also has been issued prohibiting Dr. Alzadon from applying for the issuance of a passport and/or passport card during the pendency of this case.
Berry, Bregenzer and VanHoose are scheduled to appear for an initial appearance and arraignment in U.S. District Court in Lexington on February 23 at 10 a.m. before Magistrate Judge Matthew A. Stinnett.
Court-appointed attorneys have been assigned to each defendant as follows: Noah Friend for Dr. Alzadon, John W. Oakley, II, for Kristy Berry, Bradley D. Clark for Micheal Bregenzer, and Jeffrey A. Darling for Barbie VanHoose. Adam C. Reeves, Samuel Reinhardt and the law firm of Stoll Kennon Ogden PLLC filed a notice entry of appearance as counsel on behalf of Michael Bregenzer in the case.
Editor’s Note: The indictment or charge of a person by a grand jury or otherwise is an accusation only and that person is presumed innocent until and unless proven guilty.
