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Veterans Manipulated In Missouri-Based Health Care Fraud Scheme

Americans love their veterans. The men and women who have served this country are a very special breed of people. And, because of that, they deserve an unparalleled level of respect and admiration. This is why news of a Missouri-based medical clinic owner who recently pleaded guilty to a fraud scheme involving disability examinations of veterans has been met with such disappointment.

On April 20th, the Western District of Missouri branch of the United States Department of Justice reported that 80 year-old, David L. Biersmith of Kansas City waived his right to a grand jury and entered a guilty plea for one count of health care fraud and one count of making false statements to a federal agency. As the owner and president of Industrial Medical Center (IMC) in Independence, Missouri, Biersmith wilfully and knowingly took advantage of veterans.

With no medical license or any other medical credentials, IMC operated as a drug and DNA-testing center. The clinic had numerous contracts to provide medical services, drug testing and disability examinations to both veterans and commercial motor vehicle drivers. Up until July 2013, Biersmith had a licensed physician conducting those examinations. He then started using a former physician who lost his medical license due to fraud and drug distribution charges of his own.

This violated a contract signed with Logistics Health, Inc. considering that the former doctor, 74 year-old Wayne W. Williamson, was not authorized to perform any of the examinations. The examinations were performed on veterans in order to determine the extent of their impairments and their eligibility for benefits. Not only were these actions a complete breach of the agreement, but they were detrimental to the health and well-being of the patients.

“Williamson admitted that he performed disability examinations for the Department of Veterans Affairs under IMC’s contract with Logistics Health,” says the report, “This was done in violation of Logistic Health’s contract with the Department of Veterans Affairs, which required that disability examinations be conducted by credentialed providers and that the examiners must have a clear and unrestricted license and not be excluded from participation in the Medicare or Medicaid programs.”

Of course, IMC did not admit this to Logistics Health and submitted invoices for 209 disability examinations on 53 veterans. Logistics Health then submitted those invoices to the Department of Veterans Affairs and was paid a total of $39,155. Upon discovering IMC’s breach of contract in April of 2014, Logistics Health contacted the Department of Veterans Affairs and reported the fraud.

As mentioned, Biersmith is guilty of more than health care fraud. As the report reveals, he “made materially false and fraudulent statements related to IMC’s drug testing and medical examinations on drivers of commercial motor vehicles…In a signed affidavit provided to federal agents, Biersmith stated that he had only signed a ‘few’ physicals and only before, during, or after an examination had been performed by a chiropractor.”

In actuality, Biersmith signed at least 65 documents using the chiropractor’s name that included instances when the chiropractor did not perform the exam. Biersmith now faces up to 15 years in federal prison without parole.

At Allegiant Experts, we have over 15 years of experience providing expert clinical services. We’d be happy to help you by offering our expertise to your case against a perpetrator of health care fraud. For more information, please don’t hesitate to call us at 407-217-5831 or email us at

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