The U.S. Attorney's Office for Nevada and the Justice Department’s National Fraud Enforcement Division condemned the scheme and highlighted its greed-driven nature.

The case is part of the West Coast Health Care Strike Force, a federal effort to dismantle predatory schemes targeting public healthcare programs.

Dubin faces conspiracy and healthcare fraud charges with potential penalties up to 10 years in prison per count.

The indictment includes five counts of healthcare fraud and conspiracy to commit healthcare fraud, carrying significant prison-time penalties per count.

A Henderson physician, Stephen Dubin, 74, was indicted by a federal grand jury on charges of conspiracy to commit healthcare fraud and five counts of healthcare fraud related to a $95 million Medicare scheme that pushed unnecessary amniotic wound grafts on elderly and hospice patients.

Prosecutors allege Dubin received illegal kickbacks and bribes from distributors, used falsified medical records to conceal the scheme, and funded a lavish lifestyle with the proceeds, including multi-million-dollar yachts.

Dubin allegedly billed Medicare for expensive wound care products that were medically unnecessary, targeting vulnerable hospice patients.

The scheme involved causing Medicare to pay more than $54 million for amniotic wound allografts obtained through illegal kickbacks from two distributors.

This case marks the first charges announced in Nevada by the National Fraud Enforcement Division since the West Coast Health Care Fraud Strike Force was formed to unite federal and local offices across Nevada, Arizona, and the Northern District of California.

Officials stressed the impact of healthcare fraud on elderly and vulnerable patients and affirmed ongoing government efforts to pursue such schemes.

The investigation involves the FBI, HHS OIG, and the Defense Criminal Investigative Service, with prosecution led by Trial Attorneys Chris Wenger and Shane Butland and AUSA Jessica Oliva.

The case ties into broader concerns about skin substitutes, such as dehydrated placental membranes, which have faced scrutiny after a 2025 Times investigation highlighting high costs and limited healing advantages.