Question:
Dear Steve,
Steve Vanderhoof’s widow Rayan Vanderhoof and her CURRENT STATUS with the Department of Justice and her company Olympus Medical Group Corporation for Medicare Fraud?
Was Ms. Vanderhoof ever convicted?
Answer:
Many of the court records in the case of the United States of America v. Rayan Vanderhoof are sealed and not publicly available.
She did plead guilty. A court document says, “Defendant accepts full responsibility for her actions that have led to her guilty plea. However, the facts clearly show that Defendant’s violative conduct was not based upon a malicious refusal to comply with the law and regulations concerning Medicare and businesses doing business with Medicare. And the Government’s 5K1.1 Motion confirms that Defendant from the inception of proffers with the Government was truthful and accepted full responsibility for the charges to which she has pled guilty.”
The court history can be found here.
It does appear she was sentenced and a judgment was issued for some undisclosed amount of money.
The only public information comes from Vanderhoof’s own attorneys in an August 21, 2021 document.
This document includes a statement attributed to Rayan Vanderhoof that says:
“After my husband Steve, died in December of 2016, I inherited a company which I was not then qualified to oversee. I had never operated a business or managed employees before. The first two or three years I ran the company comprised a brutally steep learning curve that taxed my limits as I learned from scratch how to run a business and how to repay approximately $400,000 in debt accumulated prior to my involvement.
At the start of the third year, I lost a knowledgeable veteran of the company, David Parker, my executive assistant, and good friend. Dave’s unexpected passing due to heart failure in December 2018 was a major setback as he had been invaluable to the business. Although the company and I suffered these great losses, I felt an overwhelming responsibility, both to move the company forward, and to do all I could to preserve the livelihood of the of the employees that had worked for my husband for years. Keeping Steve’s spirit alive, I wanted to provide my daughter that legacy from her father and a sense of stability – that we could and would continue to build upon.
Since the company was already established with all the marketing agreements in place, I trusted and relied heavily on the management team regarding legal and administrative compliance matters, even though 1 knew the ultimate responsibility was mine. I initially met with a law firm to better understand any dangers or challenges I would likely face going forward. They advised me that I should have no obstacles to continuing the business. As time passed, I engaged attorneys and experts in the field to ensure we remained compliant as we navigated the fast-changing industry. I soon found that the laws and regulations surrounding Healthcare were extremely complex and that no one, including the attorneys, agreed on best practices in our methods and agreements, but I endeavored to always err on the side of caution after receiving all the legal and accounting input. I was interested in running a clean business that could grow and thrive partly by way of a good reputation and dependable service to our clients.
As changes in the industry accelerated with each passing month, I came to realize that attorneys and others in the field were frequently changing their opinions and advice based on what was going on within the courts and agencies and their interpretations of it.
The first business model was a percentage of revenue split on the back end with the DMEs, but then I learned that the fees now had to be paid up front at a flat fee per item. 1 did my best to change our business model to comply, thereby losing the revenue of most our clients who would not change or who felt the revenue split was more compliant. I then was advised that the flat fee had to be for the Marketing Service and not by the item. I changed our business model again to remain in compliance. The Pharmacy marketing followed suit, but the Lab marketing had remained uncertain, with no clear direction from the several attorneys and industry experts I consulted. Guidance from the labs and their attorneys was likewise unclear…”
From the public record, it appears Rayan Vanderhoof fell on the sword, accepted responsibility, and is willing to accept incarceration or probation.
Have whatever feeling you might have about Rayan, it certainly appears she exhibited more honor than most in facing this challenge.
I do wish the rest of her statement was publically available, I would have like to have read the rest of her statement.
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Unfortunately, a lot of this is very hard to believe. Steve Vanderhoof was not an honest, saavy or moral businessman and had a huge judgment against him when he died in 2016, in addition to owing hundreds of employees back wages. If Mrs. Vanderhoof was able to escape jail time for this, a Federal Medicare Fraud Crime, she was very fortunate.
What is status of case against Rayan Vanderhoof?
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