The U.S. Supreme Court yesterday upheld the conviction of Reston surgeon H. Barry Jacobs for devising a scheme to defraud Medicare and Medicaid with faked laboratory tests and padded bills.
Jacobs, 35, began serving a two-year prison sentence in April, two months after the 4th U.S. Circuit Court of Appeals affirmed his May 1977 conviction by a jury in U.S. District Court in Alexandria. He is in the federal correctional facility in Allenwood, Pa.
Jacobs is scheduled to go on trial today in District of Columbia Superior Court on a charge of advising and inciting a criminal offense at a D.C. health clinic where a layman allegedly wrote a presigned prescription for an undercover police officer.
Jacobs obtained the occupancy permit for the clinic at 36 N St. SE, according to police.
Starting in 1973, Jacobs operated evening medical clinics in Reston, Fairfax and elsewhere in the metropolitan area. A clinic he ran in Manassas sent out brochures advertising a lost of operations, led by abortions, that purportedly would be done for $90. "Are you tired of paying for your doctor's Cadillac and country club?" the brochure asked.
In early 1976, the Fairfax County Medical Society put Jacobs on a three-year probation for allegedly violating its code of professional conduct. He was accused of overcharging patients and advertising his enterprises.
Soon thereafter, the society expelled Jacobs after he allegedly violated himself bankrupt in July 1976 citing debts of $562,965.
His federal conviction - for mail fraud in the Medicaid and Medicare programs - involved the now-defunct Metropolitan Diagnostic Laboratory in Leesburg.
During the three-day trial in May 1977, Assistant U.S. Attorney Frank W. Dunham Jr. described the scheme by which Jacobs and two others - Victor H. Salerno and James K. Sawicki - billed the medical programs for blood tests that had not been performed and overcharged for other tests.
Salerno and Sawicki, who were also indicted, have been futgitives for more than 18 months.