In a striking development for Maryland’s medical community, a federal court has ordered Dr. Richard Akoto, a family practitioner based in Takoma Park, to pay more than $1.4 million after being found liable for fraudulent Medicare billing. The judgment, announced on August 11, 2025, by the U.S. Attorney’s Office for the District of Maryland, marks a significant step in the ongoing fight against healthcare fraud and the protection of taxpayer funds.
At the heart of the case is the misuse of billing codes related to pain treatment devices. Dr. Akoto, who runs the practice Richard O. Akoto, M.D. PC, was found to have submitted false claims to Medicare between January 17, 2019, and May 1, 2019. Specifically, he billed for auricular stimulation (P-Stim) devices as if they were surgically implantable neurostimulator devices—a distinction with significant implications for Medicare reimbursement.
According to the U.S. Attorney’s Office, the P-Stim device provides electrical acupuncture and is applied externally to treat pain. Unlike implantable neurostimulator devices, which require surgical placement and are eligible for Medicare reimbursement, the P-Stim is a non-invasive device. Critically, acupuncture—regardless of the technology used—is not reimbursable by Medicare. By billing the P-Stim treatments as implantable procedures, Dr. Akoto was able to secure payments that were not permitted under federal guidelines.
“Dr. Akoto knowingly submitted false claims by billing non-invasive P-Stim devices as surgical implants—an unconscionable and blatant misrepresentation to exploit the Medicare system,” U.S. Attorney Kelly O. Hayes stated in a news release, as reported by WBFF. She did not mince words about the broader consequences of such actions, adding, “This type of fraud not only wastes taxpayer dollars, it also undermines trust in our healthcare system.”
The judgment against Dr. Akoto and his practice totals exactly $1,407,493.23. This figure reflects the extent of the fraudulent billing uncovered during the months-long investigation, which was conducted in close coordination with the Department of Health and Human Services Office of Inspector General (HHS-OIG).
Maureen Dixon, Special Agent in Charge at HHS-OIG, highlighted the essential role of accurate billing in maintaining the integrity of federal healthcare programs. “Accurately billing for services provided to Medicare enrollees is required of all health care providers participating in the program,” Dixon emphasized, according to WBFF. She noted that the HHS-OIG and the U.S. Attorney’s Office are committed to rooting out waste and abuse in Medicare, ensuring that taxpayer dollars are used appropriately and that patients receive honest care.
The fraudulent activity centered on a technical loophole: while the P-Stim device is used for pain management and delivers electrical acupuncture externally, Medicare rules are clear that acupuncture is not covered. By submitting claims as though the treatments involved surgically implanted devices, Dr. Akoto’s practice received payments it would not otherwise have been eligible for. The U.S. Attorney’s Office for Maryland made clear that these actions constituted a direct violation of the rules governing federal healthcare reimbursements.
This case is not merely an isolated incident but reflects a broader challenge faced by Medicare and other federal health programs. Fraudulent billing—whether through upcoding, misrepresentation of services, or the misuse of medical devices—costs the government billions each year and erodes public confidence in the healthcare system. The Akoto case stands as a cautionary tale for providers who might be tempted to bend the rules for financial gain.
Dr. Akoto’s practice, located in Takoma Park, serves a diverse community in Maryland, and the news of the judgment has sent ripples through the local medical landscape. While the court’s decision is clear, the impact on patients and the broader community remains to be seen. Some may wonder how a trusted family doctor came to be at the center of such a significant fraud case, and what safeguards are in place to prevent similar abuses in the future.
For the government, the successful prosecution of this case sends a strong message. “The U.S. Attorney’s Office, in collaboration with HHS-OIG, is committed to identifying and eliminating such waste and abuse in federal health care programs,” officials stated, as reported by WBFF. The hope is that by holding providers accountable, the system can be strengthened and public trust restored.
According to the U.S. Attorney’s Office, the fraudulent claims were submitted over a relatively short period—from January 17, 2019, to May 1, 2019. Yet, in that time, the financial impact was substantial. The detailed investigation uncovered how the practice’s billing for P-Stim devices was consistently misrepresented, resulting in improper payments from Medicare.
The P-Stim device itself is a relatively new technology in pain management. It works by delivering small electrical pulses to the ear, a form of auricular therapy that has gained popularity in some circles as a non-pharmaceutical approach to chronic pain. However, its use remains controversial within mainstream medicine, and, as the case highlights, it occupies a gray area when it comes to insurance coverage—particularly under federal programs like Medicare.
Acupuncture, whether performed with needles or via electrical stimulation, is not reimbursed by Medicare, a policy rooted in longstanding debates about its efficacy and scientific grounding. By contrast, surgically implanted neurostimulator devices, which are used for severe, intractable pain and involve a much higher degree of medical intervention, are covered due to their classification as durable medical equipment and their established use in clinical practice. The distinction, while technical, is critical for billing and compliance.
Dr. Akoto’s decision to bill the P-Stim treatments as if they were surgically implanted devices was characterized by the government as a deliberate attempt to exploit the Medicare system. U.S. Attorney Kelly O. Hayes’s condemnation was unequivocal, describing the actions as “unconscionable.” The case, she argued, underscores the importance of vigilance and integrity among healthcare providers who participate in federal programs.
For patients and providers alike, the Akoto case is a sobering reminder of the stakes involved in medical billing and the potential consequences of crossing legal and ethical boundaries. The judgment not only imposes a significant financial penalty but also serves as a warning that fraudulent practices will be met with rigorous investigation and prosecution.
As the dust settles, officials hope that the outcome will deter similar conduct and encourage greater compliance across the healthcare sector. The message from federal authorities is clear: accurate billing is not just a bureaucratic requirement—it is fundamental to the sustainability and fairness of the healthcare system.
The Akoto case, with its $1.4 million judgment and high-profile condemnation by federal officials, will likely be studied for years to come as an example of both the vulnerabilities in Medicare and the government’s determination to protect public resources. For now, it stands as a testament to the ongoing effort to ensure that healthcare dollars are spent honestly and wisely, for the benefit of all.