Newspaper article The Florida Times Union
Guilty Medicare Fraud Plea Former St. Simons Island CEO among 4 Defendants
BRUNSWICK -- The former chief executive officer of a St. Simons
Island psychiatric firm pleaded guilty yesterday to seven counts
in an 166-count federal Medicare and Medicaid fraud indictment.
Thomas E. Davidson is one of four defendants. He and his son
faced 156 of those counts. Davidson pleaded guilty to single
counts of conspiracy and money laundering and five counts of
mail and wire fraud for filing false claims and accepting
unearned payments from Medicare, Medicaid and the Civilian
Health and Medical Program of the Uniformed Services, an
insurance program for civilian employees of the Defense
The government asserts the company received $5.25 million in
payments between Jan. 1, 1989, and Dec. 31, 1995.
Davidson, 65, entered his plea before Senior U.S. District
Judge Anthony A. Alaimo, who will preside at the June 23 trial
of former officers in Shankman/Davidson Psychiatric Management
"I accept my responsibility," Davidson told Alaimo. "I profited
from it. All I can do is say I'm sorry."
Alaimo accepted the plea as the judgment of the court.
In exchange for Davidson's cooperation, the government will
move to dismiss the remaining 149 counts and make known to
Alaimo the degree of his cooperation to support a lighter
The other defendants are Davidson's partner, Andrew S.
Shankman, a 43-year old psychiatrist; Davidson's son, Michael E.
Davidson, 33, a company vice president; and Mary Jane Pedrick,
50, the firm's chief therapist. Thomas Davidson lives in Citrus
Springs, Fla., the other three still live on St. Simons Island.
The company's main office was on St. Simons and
Shankman/Davidson had 11 other offices in Georgia and Florida,
said FBI Special Agent Frank Bennett.
In detailing the company's violations, Bennett testified during
the hearing that Shankman had billed Medicare and Medicaid for
services rendered by therapists in up to 95 nursing homes from
Griffin to Fort Lauderdale, Fla. …