DOCTORS ADMIT GUILT IN FRAUD, DRUG CASE

Two Buchanan County doctors pleaded guilty in federal court in Abingdon on
Monday in connection with defrauding federal programs of about $1 million
and illegally distributing prescriptions for no legitimate medical purpose.

After Vinod Modi's medical license was suspended in 1992 for defrauding the
Department of Labor's Black Lung program for former coal mine workers, he
continued to practice and billed his services to Medicare and the
Department of Labor under the name of his wife, Kailas Modi, also a physician.

Vinod Modi, 54, pleaded guilty to one count of conspiracy to commit mail
fraud and one count of conspiracy to commit money laundering. He and his
wife also each pleaded guilty to one count of illegally distributing
controlled substances. The couple prescribed more than 1,000 units of
Fiorinal, a drug used to treat tension headaches.

The couple practiced at Miners Medical Clinic in Oakwood. Under Vinod
Modi's plea agreement , he will forfeit $2 million in assets and pay a
$75,000 fine. He is also facing up to 20 years in prison and an additional
fine of up to $750,000.

As part of her plea agreement, Kailas Modi, 55, will pay a fine of $20,000.
She faces up to 5 years in prison and an additional fine of up to $250,000.
The couple are also jointly responsible for paying $2 million in
restitution to the Black Lung program and other federal health care programs.

Assistant U.S. Attorneys Rick Mountcastle and Ruth Plagenhoef prosecuted
the case. It was investigated by state and federal authorities.

The Modis are scheduled to be sentenced Aug. 9.