Leonardtown Gynecologist Settles Fraud Allegations Related to Telemarketing Scheme

Maryland Gynecologist Pays $507,500 to Settle Federal Healthcare Fraud Allegations

A Maryland obstetrician-gynecologist has agreed to pay $507,500 to resolve allegations that she participated in a telemarketing scheme that defrauded Medicare and TRICARE, the healthcare program serving military personnel and their families.

Dr. Valinda R. Nwadike of Leonardtown in St. Mary’s County settled the civil case announced on March 26, 2026, by U.S. Attorney Kelly O. Hayes for the District of Maryland. The settlement addresses claims that from November 2014 through January 2018, Nwadike created and signed thousands of fraudulent prescriptions for compounded drugs and durable medical equipment, including knee braces.

Federal investigators alleged that Nwadike wrote prescriptions following only brief phone calls with patients, without conducting proper physical examinations or reviewing medical histories. This practice resulted in Medicare and TRICARE paying for thousands of medically unnecessary items, according to authorities.

“When physicians write prescriptions for medically unnecessary drugs and equipment, they abuse our federal health care programs,” Hayes said in a statement. “The U.S. Attorney’s Office continues to work with our partners at DCIS and HHS-OIG to hold fraudulent providers accountable. We’re committed to protecting taxpayer dollars using all available tools, including civil settlement.”

Nwadike practiced throughout Southern Maryland with offices in Leonardtown, California, and other locations in St. Mary’s, Charles, and Calvert counties. Her practice has focused on women’s health in a region where access to obstetric and gynecologic care remains crucial. She has maintained affiliations with MedStar St. Mary’s Hospital in Leonardtown and University of Maryland Charles Regional Medical Center in La Plata.

The settlement is particularly significant for the Southern Maryland region, where healthcare resources are stretched across rural and suburban communities. The tri-county area has worked to expand specialty medical services in recent years, with providers like Nwadike serving both civilian populations and families connected to Naval Air Station Patuxent River.

Maureen Dixon, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General, emphasized the importance of program integrity in the case. “Civil enforcement is an important approach to safeguarding the integrity of the Medicare program,” Dixon noted. “This settlement demonstrates our commitment to ensuring that Medicare program dollars are only paid for services that are actually needed and appropriate for patients.”

The Defense Department’s investigative arm also highlighted the impact on military healthcare beneficiaries. Allison Russo with the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office, stressed that “healthcare fraud is not a victimless crime. It directly harms the American taxpayer and undermines the efforts of honest healthcare providers who are dedicated to serving our military members and their families.”

The case originated from a complaint filed by the United States in April 2023. The investigation was conducted by HHS-OIG and DCIS, with Assistant U.S. Attorneys Matt Shea and Roann Nichols handling the matter alongside Investigator Ann Thiel.

Under the terms of the settlement, Nwadike made no admission of liability. The agreement closes the civil allegations without further action on these specific claims, though federal authorities continue broader efforts to combat healthcare fraud through coordination between the Department of Justice and investigative agencies.

The case underscores ongoing federal scrutiny of healthcare billing practices, particularly in programs serving vulnerable populations like seniors and military families. Southern Maryland’s growing healthcare network faces particular challenges in meeting increasing demand for specialty services while ensuring compliance with federal regulations governing Medicare and TRICARE.

Healthcare fraud investigations have intensified nationwide in recent years as federal programs implement more sophisticated analytics to detect unusual billing patterns and potential abuse of telehealth services.