Nearly 100 patients linked to disability fraud at closed clinic

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ST. LOUIS – With dozens of people already convicted, the feds say you can expect more criminal charges in connection with a fraud that began at a former chiropractic clinic in Arnold.

The clinic, Power-Med Inc., was run by Thomas G. Hobbs and Vivian Carbone-Hobbs. Both defendants were sentenced to prison last year and ordered to repay $20.7 million.

“They always had somebody up here at the front. They had matching his-and-her Infinity SUVs,” Chris Leon, a business neighbor, said.

Federal prosecutors say they have evidence that nearly 100 people visited the clinic in order to get the husband-and-wife chiropractors to help them cheat the system.

“The Social Security Administration is basically being ravaged by fraud,” Assistant U.S. Attorney Tracy Berry said.

Berry secured a guilty plea from one of the patient defendants Tuesday morning.

Michael C. Holaus, 69, pleaded guilty to disability fraud to the tune of $301,054.90 through both Social Security and private disability benefits. Prosecutor Berry told the judge that Holaus claimed he couldn’t do much more than read and watch TV, yet she said he was boating internationally and blogging about his adventures.

“We were able to identify over 90 individuals, over 90 patients,” she said, noting the case was far from over.

Court records list many of the patients as former Anheuser Busch employees.

“As some AB employees testified, the word had gotten around that Dr. Hobbs was the person who could get you disability,” Berry said.

“I’m glad justice finally came to them,” Leon said.

Last year’s convictions of the chiropractors came with 17 other defendants, who pleaded guilty in related cases. So far this year, another 12 patients have pleaded guilty in connection, with more expected in court soon.

“There’s so much fraud that’s clogging up the pipeline that regular individuals who are trying to do this the right way are having a hard time going through it,” Berry said.

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