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Published: Saturday, 8/23/2008

8 months for perjury added to fraud sentence

One of two brothers serving prison time for their roles in a $4.8 million money-laundering and health-care fraud scheme returned to U.S. District Court in Toledo yesterday and was sentenced to more time in prison after being found guilty of perjury.

Timothy Neumann, 47, of Toledo pleaded guilty to perjury and was sentenced to eight months in prison. Judge Jack Zouhary ordered the sentence to run consecutively to the 33-month sentence imposed in February.

Timothy Neumann and his brother, Paul, were co-owners of the former MedBack chiropractic clinics in Toledo and other cities in northwest Ohio. They pleaded guilty in September, 2005, to one count each of conspiring to commit health-care fraud and conspiring to commit money laundering.

They employed medical doctors at their clinics so they could submit false insurance claims to public and private health-care providers.

Paul Neumann was sentenced to 37 months in prison in March.

The brothers filed motions to withdraw their pleas after a third man involved in the case, lawyer James Altiere III, was found not guilty by a federal jury in March, 2006. Judge James Carr denied the motions.

Based on affidavits filed with the motions, the brothers were charged with perjury.

The case against Paul Neumann is

pending before Judge Zouhary.



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