Twisted Tale: MD Charged In Medicaid Drug Fraud Scheme Once Helped Drug Users

In last week's HealthLeaders Media Online, a 350-word story was headlined: NY Physician Charged in Medicaid Drug Fraud Ring.

The article was about Diana Williamson, MD, who allegedly wrote nearly $1 million in prescriptions paid by Medicaid for 11,000 Oxycontin, Percocet, and generic oxycontin pills that were sold in a fraud scheme, authorities said. Eight others were involved in the alleged plot.

It was another sad tale about a doc allegedly gone bad. The small item intrigued me. Williamson is 54 years old, undoubtedly a doctor for years, I figured. There must be an arc to her story, I thought.

Indeed, there is an arc to Williamson's story, as the New York media swarmed around Williamson's unlikely tale. For Williamson, dubbed the "boss" in the alleged drug dealing scheme, is a physician who spent years working with AIDS patients, and helping—yes—drug abusers stop their behaviors. The irony is thick, but we've seen and heard it before, almost to the point of being a cliché: someone who fought so hard against drug abuse is now allegedly entangled in the illicit trade.

It's not the norm, of course, but each of these over-the-edge stories has its own special meaning. No wonder there has been shock that Williamson was arrested and why. In New York, Williamson gained fame in 1998 as an advocate for AIDS patients and drug abusers when Crain's New York described her as one of their "40 under 40" rising stars. Crain's New York Business.

That year, in a story about HIV users, the New York Times sought her out to talk about her involvement with AIDS patients, and the problems of drug abuse. Then medical director of Harlem United, a nonprofit advocacy group for people with AIDS, as well as a clinical research fellow at Mount Sinai Medical Center in Manhattan, she told The Times of what she knew on the streets, saying "it's a world unto itself and (people) don't get respected the way they should."

When she was profiled by Crains, Williamson discussed respect, in terms of those abusing drugs. "My thing is, don't look down on the drug users; don't judge them," Williamson said. "They deserve care."

Respect and care, it's all true what she says about people battling drug issues. But with what authorities allege now, the woman who was among the "40 under 40" rising stars to watch in New York faces the prospect of 20 years in prison if convicted of the charges against her.

She and other defendants are charged with one count of conspiracy to distribute and possess a controlled substance, with also carries a maximum penalty of $1 million. Williamson and another co-defendant are also charged with one count of conspiracy to commit healthcare fraud, which carries another multi-year prison term.

Williamson's attorney, John Marks, could not be reached. Officials of the Citicare Inc., a medical clinic where she recently worked, declined to discuss her case.

The contrast between the Crain's article and the U.S. Attorney's complaint from the Southern District of Manhattan could not be starker.

In the profile of her in 1998, Williamson was quoted as being passionate about her work with drug users who had AIDs.  She talked about her techniques in helping patients, and the article noted, "her approach works; less than a year into her tenure, many clients are drug-free."

The recent Department of Justice statement alleged that Williamson's world was anything but drug-free.

Williamson allegedly wrote oxycodone prescriptions to patients who had no legitimate need for the medication, while a co-defendant recruited people to obtain prescriptions from her, between September 2009 and August 2010. The other co-defendants worked as resellers, providing the prescriptions to third parties, according to prosecutors.

In one instance, Williamson was in her Manhattan office, and asked for a blood sample  from a patient, who unbeknownst to her was an undercover agent. The agent indicated a fear of needles. So, according to prosecutors, Williamson drew blood from another person, put the undercover agent's name on it, and then wrote a prescription for 120 Oxycontin 80 mg pills, according to U.S. attorney's complaint. Williamson was paid $1,500. Each pill was valued at between $30 and $40 on the street.

The arrest of Williamson has spurred debate in New York.  A woman whose brother was a patient of Williamson, told the New York Daily News: "Who knew stuff like this happened? She's an upstanding lady! An upstanding lady who peddles drugs! Whew, what a scene!"

In an FBI wiretap, another defendant told Williamson over the phone, "everything would be fine" following one alleged deal. Williamson responded by telling the alleged co-conspirator to "hide the money" inside a car, the complaint states.

It wasn't "fine", according to the U.S. Attorney's Office. "The oath to 'do no harm' is turned on its head when a doctor's prescription pad is used for drug dealing," New York Police Commissioner Raymond W. Kelly said in a statement.

Williamson is now free on $250,000 bond. Among other things, authorities ordered her to relinquish her prescription pads.