DETROIT AREA DOCTOR COULD FORFEIT COIN TROVE WORTH MILLIONS IN FRAUD CASE

Original Story: detroitnews.com

A West Bloomfield neurologist who reaped millions by allegedly cheating Medicare spent more than $9.3 million on baseball cards, ancient coins, collectable currency and stamps — a rare collection he could soon lose to the government. A medical malpractice lawyer is reviewing the details of this case.

Dr. Gavin Awerbuch amassed the collection — including coins from ancient Rome — using cash generated by an alleged five-year crime wave, according to federal court records that offer rare insight into the secretive world of coin collecting. At the upper end, the world is filled with hobbyists who, due to security concerns, protect the scope and value of their prized possessions.

Awerbuch's case shows a unique twist on a growing trend of health care professionals nationwide accused of spending money from fraudulent activities on valuable possessions, including homes and automobiles.

"This flabbergasts me. I never knew that his firepower extended that far," said Metro Detroit currency dealer Frederick Bart, who sold the doctor $360,225 worth of collectable currency printed before 1928. "He didn't have a target on his back where you thought 'here comes moneybags.' "

Federal prosecutors want the collection — experts say it could be among the richest in Michigan — forfeited to the government, along with $2.9 million in cash and a million-dollar Arizona vacation home.

Awerbuch, 57, is free on $10,000 unsecured bond. If convicted, he faces 10 years or more in federal prison. A preliminary exam has been set for June 29.

Though court records do not specify exactly which collectible items Awerbuch purchased, the extent of his coin collection is emerging more than one year after he was charged with health care fraud and distribution of controlled substances. A Medicaid and Medicare lawyer is following this story closely.

He was accused of defrauding Medicare of $7 million and prescribing so much of the cancer painkiller Subsys that he was the top dispenser in the country, according to the U.S. Attorney's Office.

Awerbuch's defense lawyer, Mark Kriger, declined comment.

Newly filed court records show how Awerbuch spent money generated by allegedly fraudulent activity.

"(Sizable) purchases were made with dealers of rare and collectible coins, as well as dealers of other types of collectible items," Assistant U.S. Attorney Jonathan Grey wrote in a court filing. "These assets were purchased, at least in part, with criminally derived proceeds commingled in Awerbuch's various accounts." A Detroit insurance defense lawyer represents insurers in insurance fraud cases.

From 2008 through 2013, Awerbuch spent $9,343,527 at more than a dozen coin and collectible dealers in Michigan and across the country, according to court records.

The bulk, $7 million, was spent at Kagin's Inc. The California firm deals in rare coins, such as a pioneer gold coin for $999,999 and the first coin struck in North America, a shilling priced at $299,500.

"He was a good client," company President Donald Kagin told The News this week. "Over the years, we've had good transactions with him with different types of coins."

Kagin would not reveal what Awerbuch bought from his store, citing client confidentiality.

The collectibles Awerbuch purchased were spread across several locations. Federal agents struck gold — literally — during searches at several locations.

Investigators found gold and silver coins at his medical office in Saginaw, along with Roman coins honoring Emperors Titus and Claudius.

"If they are in nice condition, those can go for many thousands of dollars, and do," said Thomas Klunzinger, who serves on the board of the Michigan State Numismatic Society, which encourages and promotes the study and collection of currency. "Every dye was different. If you have a Roman coin, maybe it was highlighting some battle or commemorating a victory. Those (coins) were the media of the day."

Investigators also found a coin from ancient Judea, according to a search warrant inventory.

At his $1.1 million West Bloomfield home overlooking Upper Straits Lake, investigators found boxes of coins, stamps and Costa Rican currency, prosecutors allege.

Awerbuch stashed more coins, collectible currency, baseball cards, jewelry and stamps in at least 16 safe deposit boxes at PNC and Fifth Third banks, according to court records.

On Thursday, federal prosecutors asked a judge to have the coins and collectibles forfeited to the government, alleging the items were purchased with proceeds of a crime.

Federal prosecutors have not itemized the individual pieces of Awerbuch's collection.

Just a few coins could be worth millions, said Julianna Wostyn, president of the Michigan State Numismatic Society.

"You can spend a horrendous amount of money, and it doesn't have to be gold," she said. "When you're talking paper money, in the last 10 years, paper money has skyrocketed."

She has never heard of Awerbuch or met him at area conventions.

"People don't want to make themselves known," she said. "Number one: They don't want to be knocked over. I won't say they look homeless, but coin collectors are not flashy people and do not go about bragging about themselves."

Besides the coins, prosecutors want to keep almost $3 million seized from Awerbuch's bank accounts.

The money includes $622,800 seized after Awerbuch sold his home in July 2014.

Prosecutors also want the doctor to forfeit his home in the Arizona desert, saying it was purchased with money generated by health care fraud and unlawfully distributing prescription drugs. An insurance defense lawyer represents insurance companies in disputes and fraud cases.

His ex-wife is fighting the request, saying she is the innocent owner of the 4,700-square-foot home, which has a putting green, wine room, outdoor pool and waterfall.

Awerbuch bought the home two years ago for $940,000, according to court records.

He paid cash.

Prescription Drug Abuse a Growing Problem in State

UP Source

A new government study finds that in the past ten or so years, there has been a 400% increase in the number of people admitted to treatment for abusing prescription pain medication

MARQUETTE -- It's the nation's fastest-growing drug problem, and to become addicted, you don't even have to leave your house.

Prescription drug abuse is now the second-most prevalent form of illicut drug abuse in the country, and here in the U.P., the problem is growing.

All you have to do is turn on the television to see ad after ad of various prescription medications.

"Society has a very cavalier attitude about taking medications," says Great Lakes Recovery Center Primary Counselor Christine Swanson.

The GLRC in Marquette has seen a significant increase in the amount of prescription drug abuse clients, even surpassing the number of alcoholism clients.

Medications manager Cathy Warren says it's important to remember that not every prescription drug abuser is a criminal.

"Unfortunately some of our clients do come by their addictions honestly, they've either had some type of accident or injury and they are in pain," Warren says.

But there are those abusers who have had their run-ins with the law.

The majority of breaking and entering offenders, the most common offense related to prescription drug abuse, are between the ages of 17 and 25.

"Certainly we see them with a great deal more frequency now than we used to," says Marquette County Prosecutor Gary Walker.

Either way, the possession of narcotics without a proper prescription is a crime.

Counselors at the GLRC help clients to see that there are alternatives.

"They come into Michigan drug rehab with generations of alcoholism, drug addiction, legal problems, and to tell them that there is a different way to live, they know that someplace, in a small place in their mind, but they don't understand how to get there," Swanson says.

So what's the solution?

Warren advises, "Try to go around the addictive medications, or at least educate the clients about the dangers of the medication."

Internet Startup In Troy Finds Best Consumer Drug Prices

Originally Posted in The Detroit News

A Troy-based startup has turned surfing the Web for discount prescriptions into a new business that helps budget-conscious consumers better locate deals in their neighborhoods.

Medtipster.com allows users to enter their ZIP code and a prescription, and within seconds lists pharmacies nearby selling the medication at a discount -- and the price.

"We came to the realization that there are many $4 drug programs out there and Wal-Mart got a lot of the hoopla when they introduced them," said Bruce Liebowitz, Medtipster's acting chief operating officer.

Liebowitz saw a need to put all that information together on a single site.

"We decided to start a site that would allow people to maneuver their way through the information," said Liebowitz, a pharmacy industry veteran who used to own a pharmacy benefit management company, 4D Pharmacy Management Systems in Troy. Another pharmacy benefit manager also is a major investor in the Web site.

Medtipster launched a beta version of the site in February and hopes to go live with the final version within the next month and reach consumers nationwide.

Right now, the company gathers its pricing information by scouring chain drugstore ads for the latest deals and posting them to its Web site. Ultimately, Medtipster plans to charge pharmacies a monthly fee to list pricing information on the site, Liebowitz said.

He acknowledges that one of the drawbacks to the beta version of the site is that there aren't many independent pharmacies included.

The company, Liebowitz said, is trying to change that and hopes it can give independent drugstores better exposure for marketing their discount drugs through the Web site.

The concept, however, isn't a new one.

Michigan's Department of Community Health offers a similar site called "Rx Price Finder," which allows users to type in a drug name and ZIP code, and pull up pricing information for nearby pharmacies.

The state's Web site is more inclusive, listing independent pharmacies alongside chain establishments. It compiles its information by tracking Medicaid prescription prices reported to the state's Medicaid program.

At the same time, the prices aren't updated daily at Rx Price Finder and some listing can be up to a month old, a disclaimer on the Web site warns.

Leibowitz said Medtipster offers a more user-friendly interface and has other features that make it more of an interactive hub for medical information. It features a live chat tool which allows users to instant message questions to a pharmacist and receive questions in real time. And the drug prices on the Web site go beyond Michigan to include pharmacies nationwide.

Medtipster also hopes to release a mobile-version of its Web site shortly.

Having an informed consumer does have its benefits, said Larry Wagenknecht, CEO of the Lansing-based Michigan Pharmacists Association. But after reviewing the site's test version, he had some concerns, namely that it doesn't include many independent pharmacies and that he'd like to see it disclose upfront where it's gathering its information.

"If you're not including all the information of all the pharmacies out there, I question the value of the site," Wagenknecht said.

He also worries the site focuses too heavily on drug pricing and not enough on promoting the role of the pharmacist. The association advocates that patients stick with one pharmacy or pharmacists to ensure that their medical information is kept in one spot.

"It is not a safe situation running around from pharmacy to pharmacy to find the cheapest price," Wagenknecht said, adding that it limits a pharmacist's ability to track patient prescriptions and monitor for potential drug conflicts.

Liebowitz, however, said the site doesn't advocate "pharmacy hopping." Rather, it strives to educate consumers on their options, so they can make an intelligent decision about where to buy discount drugs. And in a declining economy, those savings could help patients better comply with taking their medications, Liebowitz said.

"There is a hierarchy of problems to consider," he said. "The first one is that people can't afford their medications and they're choosing between food and drugs."