Dr. Eric Edward Haeger, a physician from Brewster, Washington, was sentenced on March 25 to one year and a day in federal prison after pleading guilty to adulterating and misbranding medical devices with the intent to defraud or mislead. United States District Court Judge Rebecca L. Pennell also ordered Haeger to pay a $60,000 fine and restitution of $349,272.79.
The case is significant because it involves the distribution of unsafe medical equipment to vulnerable patients and fraudulent billing practices targeting Medicaid. The court found that Haeger’s actions put patient health at risk and undermined trust in the healthcare system.
According to court documents, between July 2021 and July 2023, Haeger purchased over 500 used and recalled CPAP and BiPAP devices through online resellers. He directed others—including his own children—to remove foam from these devices using tools such as screwdrivers in non-sterile environments before reassembling them. These altered devices were then provided by staff at his sleep clinic, Central Washington Medical Associates, to Medicaid patients under false claims that they were new.
Judge Pennell concluded that Haeger had adulterated and distributed 440 such devices billed to Medicaid for more than $600,000; $439,272.79 was paid out as a result of these claims. The United States argued that this conduct increased risks of contamination and potential harm due to deviation from FDA-approved designs.
At sentencing, First Assistant United States Attorney Pete Serrano said: “Dr. Haeger violated the trust of his patients who were misled into believing Dr. Haeger was providing them with safe and reliable medical equipment… Conduct that puts profits over patients is egregious, and my office will continue to prosecute such cases.”
Robert Iwanicki of the FDA Office of Criminal Investigations stated: “The FDA is committed to protecting patients from adulterated and misbranded medical devices that may compromise health and safety… This case demonstrates the serious consequences of altering recalled medical devices.” Robb Breeden from HHS-OIG added: “Putting recalled and unsafe medical devices into the hands of vulnerable patients is an egregious violation…”
Washington Attorney General Nick Brown said: “This is a win for patient safety… This case exemplifies the great work our team is doing in collaboration with our federal partners…” W. Mike Herrington from FBI Seattle commented: “As a physician, Dr. Haeger knew he had a responsibility… Instead, he risked the safety of hundreds of Medicaid patients by issuing them recalled medical devices he had tampered with…”
The investigation involved several agencies including the Food and Drug Administration Office of Criminal Investigations; Washington State Medicaid Fraud Control Division; Health & Human Services Office of Inspector General; Federal Bureau of Investigation; with prosecution led by Assistant United States Attorney Jeremy J. Kelley.
