A federal judge yesterday revoked the medical license of longtime Washington physician Daniel J. Veal, who pleaded guilty to mail fraud in connection with a scheme in which he filed false and inflated claims on medical bills that were paid off by auto insurance carriers.
The license revocation was part of a complex sentence imposed by U.S. Distict Court Judge Harold H. Greene. Greene additionally imposed a 10-year prison term, suspended it, placed Veal on five years probation, fined him $2,000 and ordered him to contribute 200 hours of free community service.
Veal's case resulted from an ongoing investigation by the U.S. Attorney's office here into charges that several local doctors and lawyers routinely file false claims with insurance companies on automobile accident injuries.
Law enforcement sources say that from 1972 to 1975, about 500 patients were referred to Veal by attorney Zolly B. Richburg after Richburg learned that Veal was willing to overbill insurance carriers for certain patients.
Richburg pleaded guilty to various fraud charges in 1978, was placed on probation and ordered to pay back money that had been defrauded from clients.
Veal, who lives at 5900 New Hampshire Ave. NE has a medical office at 221 Florida Ave. NW. Greene ordered him to forfeit his medical license within 60 days.
The referrals from Richburg to Veal resulted in about $130,000 in medical bills which were submitted to insurance policies as the basis for payment, law enforcement sources said.
According to court records, Veal made bank deposits averaging $15,000 a month from 1972 to 1978.A grand jury indictment alleged that the insurance scheme involving Veal occurred within that time period. About 75 percent of Veal's patients were referred to him by lawyers during those years, court records said.