Judge imposes millions against surgeon Fonn in kickback case

A federal judge in St. Louis imposed fines and damages Tuesday totaling $5.49 million against Cape Girardeau neurosurgeon Sonjay Fonn and his fianc�e, Deborah Seeger, over a kickback scheme.

A federal jury in November 2017 convicted Fonn and Seeger of submitting false and fraudulent Medicare and Medicaid claims.

Federal prosecutors said in a news release Judge Audrey Flessig imposed �treble� damages as allowed under federal law in such cases. Typically, under federal law, damages are �trebled,� or tripled, under the False Claims Act. Courts also impose a statutory penalty of $5,500 to $11,000 for each violation.

Prosecutors said Seeger started a spinal-implant distributorship, DS Medical, in November 2008. Fonn then used spinal implants from DS Medical for most of the spinal-implant surgeries he performed from 2009 to 2012, prosecutors said.

The trial involved federal program payments for 228 spinal surgeries involving Medicaid and Medicare patients, prosecutors said.

Deborah Seeger

Seeger typically received 50 percent commissions on implants Fonn used during surgeries, �meaning Dr. Fonn�s treatment choices directly impacted� his fianc�e�s distributorship income, prosecutors said after the trial.

Trial evidence showed after Seeger received commissions, she spent some of that income to benefit Fonn through home improvements, purchase of a yacht and other �purchases and expenditures,� prosecutors said in the news release.

Federal prosecutors alleged the defendants and their corporations violated the anti-kickback statute, a federal law barring health-care providers from making patient referrals in exchange for any direct or indirect benefits.

The federal suit began as a civil case brought by a handful of Cape Girardeau doctors and two others in 2012. Those individuals will receive a percentage of the award, the Southeast Missourian reported last year.

Cape Girardeau physicians Terry Cleaver, Kyle Colle, Scott Gibbs (now deceased), Paul Tolentino and Kevin Vaught, surgical assistant Daniel Henson and Cape Girardeau resident Paul Cairns filed a civil suit in federal court five years ago against Fonn and Seeger and their medical companies regarding kickback allegations.

In a 2012 court filing, it was alleged Fonn, who owned and operated Midwest Neurosurgeons, and Seeger had an �exclusive arrangement� resulting in large profits for the defendants.

�Fonn has bragged that his earnings and Seeger�s earnings exceed $8 million per year,� according to the court document.

In 2014, the government intervened in the civil suit, essentially taking over prosecution of the civil case.

Fonn�s attorney, James Martin, argued in a September 2014 court filing �nothing in the complaint suggests it is against the law for a doctor to send business to a vendor because of love and compassion, out of friendship or to assist one�s life partner in their business development.�

That same year, a federal grand jury handed down a four-count criminal indictment accusing Fonn and Seeger of one count of conspiracy to solicit and receive illegal kickbacks and three felony counts of anti-kickback violations.

The criminal case against Fonn and Seeger alleged they operated DS Medical LLC together as a distributor of medical devices and supplies Fonn used in his practice, Midwest Neurosurgeons LLC.

The indictment accused Fonn of altering his medical practice to include more surgeries than usual and to use more spinal implants in those surgeries during the time DS Medical was operating.

It also accused DS Medical of charging manufacturers exorbitant commissions Fonn and Seeger allegedly used to buy a home, boat, airplane and make improvements to their house.

In December 2015, U.S. Magistrate Judge Abbie Crites-Leoni dismissed the criminal case against Fonn and Seeger at the request of prosecutors.

mbliss@semissourian.com

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