Washington Physician Admits Role in Medical Device Fraud Case

A Washington state doctor faces a three-year prison term for trying to defraud the U.S. government through misbranded medical devices.

Dr. Eric Edward Haeger, of Brewster, Wash., pleaded guilty in an Eastern District of Washington courtroom to adulterating and misbranding medical devices with the intent to defraud or mislead, First Assistant United States Attorney Pete Serrano said. Under the plea agreement, Dr. Haeger, 57, could spend up to three years in prison, be subject to 12 months of supervised release, and fined $250,000.

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 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, Dr. Haeger purchased through online resellers more than 500 used and recalled CPAP and BiPAP devices. Dr. Haeger and others at his direction would then open the devices, attempt to remove the foam using screw drivers, hooks, and other tools, and then put the devices back together, prosecutors allege. The machines were dismantled in locations that were not designed or operated as medical device manufacturing clean rooms.

Dr. Haeger and staff at his sleep clinic under his control and supervision would then provide the recalled devices to Washington State Medicaid patients. Sleep clinic staff—under Dr. Haeger’s direction and control—would then bill the used, recalled devices to Medicaid claiming they were actually new products in good working order.

Dr. Haeger is scheduled for a sentencing hearing on March 24. 

The case is being investigated by the U.S. Food and Drug Administration Office of Criminal Investigations, the Washington State Medicaid Fraud Control Division, the Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorney Jeremy J. Kelley.