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July 9, 2002

Two chiropractors, found guilty of fraud, are fined and sentenced to prison

TUMWATER - A federal court in Seattle has found the former owners of the Alderwood Back & Pain Clinic guilty of conspiring to commit mail fraud and health care fraud, sentencing the two chiropractors to 10 months in federal prison, two years probation and 200 hours in community service.

Doctors Randall E. Woodward and Patrick K. Osborne also were ordered to pay restitution to the Department of Labor & Industries and Premera Blue Cross. Late last week, L&I received a check for $78,789.97. Premera was paid $70,000. The pair also paid $3,000 in fines.

The convictions came after an 18-month investigation by the FBI, the U.S. Postal Service, Premera Blue Cross, Orion Insurance Co. and fraud experts in L&I's Provider Fraud Program.

In addition to the repayment, L&I has revoked the two chiropractors eligibility to treat workers injured on the job.


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