ROCKFORD (WIFR) -- A DeKalb doctor and his wife were arrested on charges of illegally dispensing controlled substances and federal income tax fraud.
Richard H. Ng, 61 of doctor of osteopathic medicine and president and sole shareholder of Sauk Medical Clinic with offices in Sterling and DeKalb, was charged by a federal grand jury in Rockford in an 89 count indictment, including one count of conspiracy to dispense controlled substances outside the course of professional practice and without a legitimate medical purpose, 81 counts of dispensing controlled substances outside the course of professional practice and without a legitimate medical purpose, and 7 counts of income tax fraud.
Lee Lee Foong, 54, also known as Audrey, who was married to Ng, was charged with one count of conspiracy to illegally dispense controlled substances outside the course of professional practice and without a legitimate medical purpose, 5 counts of conspiracy to illegally dispense controlled substances outside the course of professional practice and without a legitimate legal purpose, and one count of income tax fraud.
According to the indictment, Ng owned and operated the Sauk Medical Clinic and Foong was the office manager for the clinic. From January 2007-October 2011, Ng and Foong allegedly dispensed Oxycodone, Methadone, Morphine, and other prescription pain medications outside the course of professional practice and without a legitimate medical purpose, the dispensation of which in some case resulted in death and other bodily injuries. During the course of the conspiracy, Ng saw patients at Sauk Medical Clinic’s offices in Sterling and DeKalb on at least a monthly or bi-weekly basis to dispense large quantities of prescription controlled substances. The indictment alleges Ng failed to conduct adequate medical evaluations, increased the dosage amounts, and required patients to return frequently to Ng to obtain excessive amounts of the controlled substances. According to the indictment, Ng continued to issue prescriptions despite obvious “red flags” that his patients were abusing or misusing the controlled substances. The indictment alleges that Ng continued to prescribe excessive amounts of controlled substances knowing that these dispensations resulted in the death of three of his patients.
The indictment also alleges that Ng filed false U.S. corporate income tax returns for Sauk Medical Clinic for 2008–2010, knowing the returns underestimated gross receipts of Sauk Medical Clinic by a total of $922,850 over those years, which would have resulted in additional federal income tax due of $320,738. It is further alleged that false federal individual tax returns were filed by Ng for the calendar years 2008–2010, and by Ng and Foong for 2011, the year they were married, which failed to report a total of $1,256,486 in cash received from Sauk Medical Clinic and rental receipts. The indictment charges that the unreported income would have resulted in additional federal income tax due of $270,873.
Depending on the controlled substance involved, each charge of illegally dispensing a controlled substance carries a maximum penalty from up to 5 years in prison to a maximum penalty of life imprisonment in cases of death or serious bodily injury, in addition to a fine ranging from $250,000 to $1 million. Each count of filing a false income tax return carries a maximum penalty up to 3 years in prison, or a fine of up to $100,000 for an individual ($500,000 for a corporation), or both, as well as the costs of prosecution. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.