A 74-year-old Nevada doctor has been charged in an alleged $95 million Medicare fraud scheme involving medically unnecessary wound care products used on elderly patients, including vulnerable people in hospice care. A federal grand jury in the District of Nevada indicted Stephen Dubin, M.D., of Henderson, Nevada, on August 4, 2026, alleging that he caused Medicare to be billed more than $95 million for expensive amniotic wound allografts. Medicare paid more than $54 million on the allegedly fraudulent claims, according to the U.S. Department of Justice (DOJ).
Dubin, the sole owner of Dubin Medical Consultants, Inc., also known as Wound MD, faces one count of conspiracy to commit health care fraud and five counts of health care fraud. If convicted, he faces a maximum penalty of 10 years in prison for each count. The FBI, HHS Office of Inspector General and Defense Criminal Investigative Service are investigating the case.
According to the indictment, Dubin obtained amniotic wound allografts through alleged illegal kickbacks, bribes and rebates involving two distributors.
Prosecutors allege that some of the payments were disguised as legitimate “Rebate Agreements.” The arrangements allegedly reduced Dubin’s actual cost of acquiring the allografts while allowing him to submit Medicare claims based on sham invoices reflecting higher prices.
The indictment alleges that Dubin sought reimbursement based on the listed full price rather than the amount he actually paid. Dubin and others allegedly kept the difference between Medicare’s reimbursement and the actual purchase cost as profit. One distributor allegedly routed kickback payments through a pass-through bank account held by a shell company.
The allegations also concern the medical necessity of the wound treatments.
Prosecutors allege that Dubin and his co-conspirators applied allografts without regard to patients’ medical needs. The indictment specifically alleges that grafts were used on infected wounds, wounds that were not responding to treatment and wounds where the quantity of graft material exceeded the size of the wound.
Dubin allegedly used the products without first attempting, completing or confirming conservative wound care when required by Medicare. Prosecutors further allege that he selected allografts based on potential profit rather than patient need.
Some of the patients were elderly and receiving hospice care, according to the DOJ. Prosecutors also allege that Dubin falsified medical records to make the procedures appear medically necessary and compliant with Medicare requirements.
The Dubin indictment follows other federal Medicare wound care fraud cases involving amniotic allografts.
In July 2025, Mary Huntly, 67, a Las Vegas nurse practitioner, pleaded guilty to conspiracy involving fraudulent Medicare billing for amniotic wound allografts. DOJ records state that Huntly’s wound care company billed Medicare approximately $14.33 million between September 2022 and April 2024, with Medicare paying approximately $9.11 million.
A separate 2025 case involved Paulino Gonzalez, a Las Vegas registered nurse. According to DOJ records, a wound care company billed Medicare more than $94 million for allografts applied by Gonzalez and others between October 2021 and April 2024. Medicare paid more than $54 million, while Gonzalez allegedly received approximately $7.39 million in illegal kickbacks from an allograft distributor.
The Dubin case marks the first announced charges in Nevada by the National Fraud Enforcement Division since the West Coast Health Care Fraud Strike Force was formed in April 2026.
The multi-district initiative combines the Justice Department’s Health Care Fraud Section with the U.S. Attorney’s Offices for the District of Arizona, District of Nevada and Northern District of California. The DOJ said the strike force was created to strengthen coordinated investigations into health care fraud affecting programs including Medicare, Medicaid and TRICARE.
Nationally, the DOJ said its Health Care Fraud Strike Force Program has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007.
Prosecutors also allege that Dubin used proceeds from the scheme to fund a lavish lifestyle, including having multimillion-dollar yachts built.
The case remains pending. An indictment is an allegation, not a conviction. Dubin is presumed innocent unless and until proven guilty beyond a reasonable doubt in court.
Reference:
1. U.S. Department of Justice. “Nevada Doctor Charged with $95M Wound Care Fraud on Medicare.” Office of Public Affairs, August 5, 2026. https://www.justice.gov/opa/pr/nevada-doctor-charged-95m-wound-care-fraud-medicare
(Rh/ARC/MSM)