HEALTH CARE FRAUD ALLEGED

Seven Myrtle Beach physicians and an office worker charged in connection
with illegally distributing OxyContin and other narcotics from a pain
management clinic are facing additional charges involving health care fraud.

A federal grand jury has returned an amended, 93-count superseding
indictment against D. Michael Woodward, 45; Michael Jackson, 55; Thomas
Devlin, 60; Deborah Bordeaux, 50; Ricardo Alerre, 72; Deborah Sutherland,
52; Venkata Pulivarthi, 42; and Windy Suggs, 37.

The new indictment says the defendants made patients undergo unnecessary
tests so fraudulent claims could be submitted to Medicare and other health
care plans. In some instances, tests were altered or created so claims
could be filed, the indictment said.

In addition, more than $5 million was received as a result of the sale of
controlled substances outside the usual course of medical practice and from
the payments made by health care benefit programs, the indictment said.

The case is expected to go to trial early next year.

It was originally set for later this month, but the new charges mean
attorneys will need more time to prepare, said Assistant U.S. Attorney
William E. Day II of the Florence office.

"It's a complicated case," Day said. "It will take about a month to try the
case."

If convicted, each suspect faces a minimum mandatory sentence of 20 years
to life in prison.

The superseding indictment added health care fraud counts to the original
indictment issued in June.

The original indictment included charges of conspiracy to distribute
controlled substances, distribution of controlled substances and money
laundering.

The indictment also said serious injury and death resulted from the
distribution of OxyContin, Day said.

The illegal drug activity and health care fraud took place from June 1997
through June 2001, the indictment said.

The drug and health care fraud charges stem from an investigation by the
Drug Enforcement Administration's Office of Diversion Control involving the
now closed Comprehensive Care & Pain Management Clinic, at 7710 N. Kings
Highway in Myrtle Beach. Woodward was the owner of the clinic.

Early last year, the DEA received reports from local police and pharmacies
of overprescribing of narcotics by doctors connected to the clinic. The
clinic closed after the DEA issued sanctions against the doctors,
suspending their certificates to prescribe narcotics.

Woodward remains in federal custody on $250,000 bond. Sutherland remains at
large and the other defendants have been released on bail, Day said.