Fraud arises when a physician intentionally misleads a patient about the risks
and benefits of a treatment. It becomes a serious legal (and criminal) issue
when a patient is induced to accept substandard care by forgoing beneficial
treatment or submitting to an unorthodox treatment. Concerns about fraud
often arise when a physician begins to specialize in an unorthodox treatment.
The most common examples are weight loss clinics that employ unusual and
unapproved regimens, such as giving patients human chorionic gonadotrophin
injections or pesticide pills. A patient who can establish fraud may be entitled
to punitive damages. Fraudulent dealings may also subject the physician to
criminal prosecution and the loss of his or her license. One physician who was
involved with a fraudulent weight loss clinic was successfully prosecuted under
the federal racketeering laws. [United States v. Bachynsky, 934 F.2d 1349 (5th
Cir. 1991).]