Nevada Doctor Charged in $95 Million Medicare Wound Care Fraud Scheme 

A Henderson physician has been charged in a sprawling $95 million scheme to defraud Medicare by billing for medically unnecessary amniotic wound allografts applied to elderly patients, including those in hospice care, federal prosecutors announced this week.

On Tuesday, a federal grand jury in the District of Nevada returned an indictment against Stephen Dubin, M.D., 74, sole owner of Dubin Medical Consultants, Inc. (also known as Wound MD). Prosecutors allege Dubin caused Medicare to be billed more than $95 million for expensive amniotic allografts procured through illegal kickbacks and bribes. Medicare paid over $54 million on the false and fraudulent claims. 

“This indictment exposes a scheme driven by greed, not medicine. As alleged, this provider exploited elderly patients by pushing costly and unnecessary medical procedures, then lied to Medicare to pocket millions of taxpayer dollars,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. 

According to the indictment, Dubin received illegal kickbacks, bribes, and rebates from two allograft distributors. Some payments were structured to appear as legitimate “Rebate Agreements.” He allegedly submitted claims based on sham full-price invoices rather than the discounted net cost he actually paid, pocketing the difference. One set of kickbacks allegedly flowed through a pass-through bank account held by a shell company. 

Induced by these payments, Dubin and co-conspirators allegedly applied the costly grafts without medical necessity—including to infected wounds, wounds that were not responding to treatment, in quantities far exceeding wound size, and without first attempting required conservative care. Records were allegedly falsified to conceal the lack of necessity. Vulnerable hospice patients were among those targeted. 

Proceeds funded a lavish lifestyle that included multi-million-dollar yachts. Dubin faces one count of conspiracy to commit health care fraud and five counts of health care fraud. Each count carries a maximum of 10 years in prison if convicted. 

It is the National Fraud Enforcement Division’s first announced charges in Nevada since the formation of the West Coast Health Care Fraud Strike Force in April 2026, which unites efforts across Arizona, Nevada, and Northern California. Investigators from the FBI, HHS-OIG, and Defense Criminal Investigative Service handled the probe. 

First Assistant U.S. Attorney Sigal Chattah emphasized that health care fraud “steals vital resources from elderly and vulnerable citizens who truly need life-saving treatments.” 

This case fits a broader pattern of amniotic allograft and skin-substitute fraud that has drained Medicare of billions nationwide. Medicare spending on these products exploded in recent years, reaching nearly $15 billion in 2025 amid widespread kickback schemes, before reimbursement rates were sharply cut. 

In Nevada alone, the U.S. Attorney’s Office for the District of Nevada has pursued related wound-care cases. In the 2025 National Health Care Fraud Takedown, registered nurse Paulino Gonzalez, 40, of Las Vegas—a Clinical Wound Specialist at Wound MD—was charged in connection with a scheme in which a wound care company billed Medicare over $94 million (with more than $54 million paid) for allografts applied by Gonzalez and others; he allegedly received about $7.4 million in illegal kickbacks. 

Separately, nurse practitioner Mary Huntly, 67, of Las Vegas pleaded guilty in July 2025 to conspiracy involving medically unnecessary allografts. Her wound care company fraudulently billed Medicare approximately $14.3 million between September 2022 and April 2024; Medicare paid about $9.1 million. She faces up to five years in prison at sentencing. 

Combining the Dubin/Wound MD scheme (approximately $95 million billed / $54 million paid) with Huntly’s case yields roughly $109 million in related Medicare wound-care fraud billing prosecuted by the DOJ’s District of Nevada office, with about $63 million paid out. These figures draw from official U.S. Attorney’s Office announcements; an indictment remains an allegation, and defendants are presumed innocent until proven guilty. 

Nevadans have also featured prominently in larger multi-district cases. Las Vegas nurse practitioner Marizel Yukee faces charges in a Southern District of Texas case involving more than $906 million in false claims to Medicare and TRICARE (about $297 million paid) through mobile wound clinics operating in multiple states, including Nevada; assets seized included a Ferrari and high-end jewelry. Las Vegas resident Brian Rowan was charged in Arizona in connection with a $1.2 billion allograft scheme (approximately $614 million paid). Another Las Vegas defendant, Michael McMillan, faces charges in Northern District of Texas tied to roughly $268 million in claims related to wound-care products.

 The Nevada Attorney General’s Office, under Aaron Ford and its Medicaid Fraud Control Unit, primarily handles Medicaid rather than federal Medicare cases. Public records and reporting show the office has secured approximately $40.9 million in restitution and costs from Medicaid fraud prosecutions in recent years, including about $5.5 million ordered in one behavioral-health fraud ring involving multiple defendants.

Ford’s claims about the $40.9 million figure and his office’s handling of Medicaid fraud referrals are being challenged. Republican Assemblyman Blayne Osborn and Gov. Joe Lombardo’s campaign have questioned why only about 40% of referrals are accepted for prosecution and whether the recovery numbers are overstated. Nevada’s Health Authority has stated it cannot confirm the $40.9 million figure and reports receiving only about $1.6 million total from Ford’s office since 2020. Lombardo campaign spokesperson Halee Dobbins has publicly suggested Ford “may be overstating his record.”