Federal fraud charges against Filipino doc tossed

By RYAN J. FOLEY
ASSOCIATED PRESS WRITER

MADISON, Wis. -- A judge dismissed charges against a Filipino doctor accused of defrauding the U.S. military's health care program by submitting $2 million worth of bogus claims, saying prosecutors waited too long to arrest him after filing charges.

U.S. District Judge Barbara Crabb ruled Monday that Dr. Diogenes Dionisio's constitutional right to a speedy trial was violated because investigators waited four years to arrest him after his 2004 indictment.

Prosecutors say Dionisio, who ran a clinic near Manila, defrauded the military's Tricare program in 1999 and 2000 by submitting inflated claims and splitting payments with patients.

They did not seek Dionisio's arrest and extradition from the Philippines, arguing that the country's government was corrupt and would fail to execute the request or botch it.

Instead, federal agents arrested Dionisio in March when he stepped off a plane in the U.S. territory of Guam, where he was taking a family vacation.

Crabb wrote that Dionisio, 58, lived and worked at the same address from 2004 to 2008 and took no steps to evade arrest. She said prosecutors offered little evidence to support their belief that rampant corruption in the Philippines would render any extradition request unsuccessful, pointing out that the U.S. government claims its extradition treaty with the Philippines is working.

Assistant U.S. Attorney Peter Jarosz said prosecutors are considering an appeal.

His office has conducted a long-running investigation into overseas fraud involving Tricare, which insures 9.2 million current and retired service members and dependents worldwide.

Seventeen people have been convicted so far - including at least a dozen U.S. military retirees - in a little-noticed investigation that has been handled by federal prosecutors out of Wisconsin because Madison-based WPS Health Insurance holds the contract to process many of the claims. It has not been accused of any wrongdoing.

Much of the fraud, which court records show exceeded $100 million, has originated in the Philippines, where U.S. military bases were located until the early 1990s and many military retirees still live.

If prosecutors do not appeal, defense lawyer Charles Giesen said the ruling clears the way for his client to return to the Philippines. Dionisio has been living with relatives in Skokie, Ill., but barred from leaving the country while he faced charges.

"Dr. Dionisio is gratified and pleased and very anxious to return to his patients and family," Giesen said. "I'm hopeful they won't appeal. It was a very well-reasoned decision."

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