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San Diego chiropractor, George Reese was indicted in 2014 for referring patients to a Los Angeles area medical service provider. Foremost Shockwave Solutions in return for bribes. The bribes were $100 per patient and paid through an intermediary. After taking a cut amounting to $25 per patient, the intermediary would pay the remaining $75 per patient to Reese.

Foremost Shockwave Solutions was allegedly controlled by attorney Lee Mathis and Fernando Valdes its president. Both were also indicted. Although disguised as “office rent” payments, the illegal bribes were allegedly paid in cash during clandestine exchanges in restaurants and parking lots.

According to the indictment, Reese and his codefendants generated and submitted bills to insurers totaling in the tens of millions of dollars. Most of these treatments involved the providing of “Shockwave therapy,” which uses low energy sound waves to initiate tissue repair. Proceeds from the insurance claims generated through this scheme were paid to Mathis and Valdes.

Reese pleaded guilty in June 2016. and began serving a one year one day sentence. His plea agreement remains sealed. Valdez entered into a plea agreement in July 2017. His plea agreement also remains sealed.

In 2018 attorneys claimed that Mathis has been interviewed and administered standardized psychological and neuropsychological, memory, malingering and motivation and he has been interviewed regarding competency factors for a total of 16 hours between February and July 2018. Dr Veronica Thomas concluded Mathis was unable to assist counsel at trial.

The Government engaged Dr. Matthew Carroll to evaluate Mr. Mathis’ competency to stand trial. In his interviews with Dr. Carroll, Mr. Mathis was able to provide a detailed personal and professional history. They discussed the pending charges and Mr. Mathis provided a summary of the Workers’ Compensation system, his role in the system and he discussed the Government’s case. Mr. Mathis demonstrated a reasonable appreciation of the charges against him. He described “his side of the story in a coherent and logical manner.”

It was Dr. Carroll’s opinion that Mathis understands the nature and consequences of the proceedings against him and can assist properly in his defense and testify on his own behalf. Thus, in March 2019 Mathis was found competent to stand trial.

Mathis subsequently pleaded guilty on September 12, 2019 to count two of the nine count indictment, Honest Services Mail Fraud. He was sentenced to 14 month is federal prison and is scheduled to surrender on January 21, 2020. He will be on 3 years supervised release thereafter.