Conspiracy to Commit Healthcare Fraud: A Doctor Faced 51 Months, Served 10

Charge: Conspiracy to commit healthcare fraud. One count. Guilty plea. Tennessee.

Service: Sentencing narrative, PSR preparation, character reference letters, mental health referral, RDAP identification, prison preparation, family support.

Outcome: The government sought 51 months. The judge imposed 33. RDAP was accepted early. He served 10 months.

[VIDEO EMBED: https://youtu.be/VEntYnrcv-Y . 16:9 responsive, lazy-load. Human to paste the real embed code.]

What He Saw on the Screen

He had built his dental practice into an organization caring for 50,000 patients a year in Tennessee. He coached other dental professionals across the country. He ran missionary work.

Then he saw the words on the screen: United States of America versus Richard Nate Schott.

"It's not just like there's an elephant on your chest. It truly is, in my opinion, the greatest superpower of the world versus one person."

He fell into depression, anxiety, hypervigilance. His lawyers did their job. But the government had spent three years building its case before he knew he was a target, and by the time he pleaded guilty to one count of conspiracy to commit healthcare fraud, they were in the bottom of the eighth inning.

He found Justin Paperny's YouTube videos. He watched the judge interviews. He called.

What the Government Had

His practice billed for services not delivered as documented. He did not set out to harm patients; he had built the organization to serve them. But federal healthcare fraud does not require intent to harm. It requires that the billing was false and that he signed documents saying otherwise.

Three years of investigation. One guilty plea. The government asked for 51 months. He did not spend the months that followed waiting.

What We Built

He hired White Collar Advice seven months before sentencing and used all of it.

He answered detailed questions about his childhood, his career, and his substance-abuse history. The narrative did not ask the judge for sympathy. It showed a full life: a man who built a dental organization serving 50,000 patients, who crossed a legal line, and who spent seven months examining how it happened and why.

"I wasn't going in to plead my case. I was going in to show who I was and how I had remorse."

The team spoke with his colleagues and family and helped them write character reference letters built on specific moments. Not "he is a good person." What they saw him do, and when.

Justin referred him to a mental health professional with criminal-justice experience, and he worked through a lifelong struggle with substance abuse and had it documented before sentencing.

He walked into his probation interview with a written narrative and knew what the officer needed to hear. The officer's report carried that preparation to the judge.

"The probation officer is going to be the one going before that judge with what you had. And they have so much sway."

The team confirmed he was eligible for RDAP based on his substance-abuse history and prepared him to apply. He was accepted early. His lawyer said he had never seen a defendant come close to this level of preparation.

What Happened at Sentencing

The government asked for 51 months. His attorneys countered with 18, backed by the narrative, the letters, the mental health documentation, and seven months of work. The judge imposed 33. His lawyers said it was unheard of for that judge.

Years later, he ran into the judge in an airport. The judge remembered him.

"I really believed you. You had a good story. I felt it was true and it reflected who you were."

After Sentencing: RDAP and 10 Months Served

He surrendered to a federal prison camp with a release plan. He knew what to expect, and he had already been accepted into RDAP. Ten months after he surrendered, he went home. Not because of COVID. Because of RDAP and the record he built before he walked through the door.

"I did not get out early due to COVID, but because of the skilled and compassionate preparation given by Justin and the team at White Collar Advice. I firmly believe I served a 10-month sentence because of the professional preparation that Justin and his team provided."

While he was inside, Justin called his wife, checked in, and kept the family grounded.

The Outcome

Frequently Asked Questions

What is conspiracy to commit healthcare fraud and what is the sentence?

Conspiracy to commit healthcare fraud under 18 U.S.C. 1347 means agreeing to defraud a healthcare benefit program through false or fraudulent claims. It does not require proof of intent to harm patients; it requires that the billing was false and that the defendant signed documents saying otherwise. Sentences follow the guideline calculation: loss amount, role, and criminal history. In this case the government sought 51 months, the judge imposed 33, and the defendant served 10 through RDAP.

What should a doctor or dentist do after a healthcare fraud guilty plea?

Build the record between plea and sentencing. Write the sentencing narrative, prepare for the PSR interview because the probation officer's report and recommendation carry real weight with the judge, gather character reference letters that speak to specific moments, document any mental health treatment, and identify RDAP eligibility if substance abuse is part of the history. In this case the defendant had seven months and used every one, and his lawyers said they had never seen a defendant work that hard.

What is RDAP and how does it help in a healthcare fraud case?

The Residential Drug Abuse Program is a Bureau of Prisons program for federal prisoners with a documented substance-abuse history, and completing it can take up to a year off the sentence. Eligibility turns on a documented history, not the charge, so it is available in healthcare cases like any other. In this case the team confirmed eligibility before surrender, documented the history in the narrative and PSR, and prepared the application. He was accepted early and served 10 months of a 33-month sentence.

How did the sentencing narrative change the outcome?

The judge imposed 33 months against a government ask of 51. Years later, in an airport, the judge told the defendant: "I really believed you. You had a good story. I felt it was true and it reflected who you were." The narrative did not defend the conduct. It gave the judge a full picture of who the defendant was before, during, and after the offense, in his own voice, supported by documentation, and delivered to the probation officer months before sentencing.

What happens to a medical or dental license after a healthcare fraud conviction?

A federal felony conviction triggers licensing-board review and can lead to suspension or revocation, and the outcome varies by state. It is handled separately from the federal sentence, so it needs its own plan. In this case the defendant lost his dental license after the conviction, moved into dental consulting and education, and intends to reapply.

What are the pros and cons of a federal plea agreement?

A plea agreement usually produces a lower guideline range than trial, includes acceptance-of-responsibility credit that reduces the offense level, and avoids the risk of conviction on multiple counts. The tradeoffs are real: you give up the right to trial and accept responsibility for the charged conduct. Once you plead, the work shifts to building the mitigation record between the plea and sentencing. In this case the plea opened the door, and the record built in the seven months that followed shaped what came through it.