Spokane, Washington — On March 25, United States District Court Judge Rebecca L. Pennell sentenced Dr. Eric Edward Haeger, age 57, of Brewster, Washington, to one year and a day in federal prison followed by a one-year term of supervised release after Haeger pleaded guilty to adulterating and misbranding medical devices with the intent to defraud or mislead. Judge Pennell also sentenced Haeger to pay a $60,000 fine and $349,272.79 in restitution. The Plea Agreement can be found here.In June 2021, Philips Respironics initiated a recall for certain CPAP and BiPAP devices due to potential health risks associated with the foam used in the devices for sound abatement. The recall was classified as a Class I recall because there was a reasonable probability that the use of, or exposure to, the devices would cause serious adverse health consequences or death. The potential health risks identified at the time included inflammatory response, asthma, nausea or vomiting, and toxic or cancer-causing effects.Based on court documents, between July 2021 and July 2023, Haeger purchased over 500 used and recalled CPAP and BiPAP devices through online resellers, which were shipped to the Eastern District of Washington. Haeger, and others at his direction, including his own children, would then open the devices, attempt to remove the foam using screw drivers, hooks, and other tools, and then put the devices back together. This conduct occurred in locations that were not designed or operated as clean rooms for the purpose of manufacturing medical devices.Haeger and staff at his sleep clinic, Central Washington Medical Associates, under his control and supervision would then provide the used, recalled, and adulterated devices to Washington State Medicaid patients. Staff at the sleep clinic under Haeger’s direction and control would then bill the used, recalled devices to Medicaid with the false and fraudulent representation that they were new devices that were in good working order.At sentencing, the Court concluded that Defendant had adulterated and provided to patients 440 devices that were then billed to Medicaid for over $600,000, of which $439,272.79 was paid to Defendant. The United States contended that the number of devices and loss was even more extensive. The United States argued that each of these devices presented potential harm to the patients in the way they were adulterated, both because the adulteration exasperated the risk of inhaling harmful particulates and because the devices were altered from the carefully engineered and FDA approved design, which could cause additional problems with the devices such as overheating.In sentencing Haeger to just over 12 months imprisonment, Judge Pennell acknowledged Haeger’s conduct was ongoing and extensive and that he continued to blame others for his own decisions. Judge Pennell recognized Haeger’s conduct created potential harm for his patients by creating a significant concern of contamination. Judge Pennell also stressed how Haeger’s conduct served to undermine confidence in medical professionals and medical institutions, which can cause further anxiety and stress for those seeking medical treatment when they are not sure they can trust their own doctors.“Dr. Haeger violated the trust of his patients who were misled into believing Dr. Haeger was providing them with safe and reliable medical equipment,” stated First Assistant United States Attorney Pete Serrano. “Instead, Dr. Haeger devised an extensive scheme to defraud his patients and Medicaid, prioritizing profit over patient health and safety. Conduct that puts profits over patients is egregious, and my office will continue to prosecute such cases.”“The FDA is committed to protecting patients from adulterated and misbranded medical devices that may compromise health and safety,” said Special Agent in Charge Robert Iwanicki, FDA Office of Criminal Investigations, Los Angeles Field Office…
Source: U.S. Department of Justice