Nevada doctor charged in $95 million skin substitute scheme with a hidden 40% kickback

2026 United States Charged

The Justice Department filed charges on August 4, 2026 against Dr. Stephen Dubin, a doctor in Nevada, alleging that he orchestrated a $95 million Medicare fraud scheme involving expensive and unnecessary wound coverings applied to elderly patients. According to the charges, he submitted sham invoices to Medicare that did not reflect a 40% kickback, and applied skin substitutes to patients who were not good candidates, including those with infected wounds and those not helped by prior treatments. The Justice Department said he used his Medicare earnings to finance a lavish lifestyle that included multimillion-dollar yachts. These are allegations. Dubin is presumed innocent unless a court finds otherwise.

Year
2026
Where
United States
Outcome
Charged (an allegation, not a conviction)
Reported loss
$95.0 million
Victims
Not stated in the sources
Schemes
Skin substitute and wound graft fraud
Last reviewed
2026-10-19

The facts, as recorded

Why this case matters

It adds a kickback hidden from Medicare. The charges allege that Dubin sent Medicare invoices that did not reflect a 40% kickback. In his own 2025 account to the New York Times he described a 60/40 split of the Medicare reimbursement, with the other side getting 60 and the provider 40, and the Justice Department’s charges allege that the invoices did not reflect it.

What the Times reported about the product

The article describes skin substitutes as bandages made from dehydrated placentas that cost thousands of dollars per square inch and, as the Times reported, have not been found to help most wounds heal any better than regular bandages. It reports that Medicare paid nearly $15 billion for them in 2025, and that after the Times investigation the Trump administration sharply cut reimbursement rates.

The caveat

The Justice Department’s charges are allegations, and Dubin is presumed innocent unless a court finds otherwise. He said in 2025 that he used skin substitutes only when they were necessary, and the article says he did not immediately respond to a request for comment on the charges. Legacy Medical Consultants itself is not alleged in this article to have been charged; the article reports that an executive was. This page relies on one news account of the charges because the Justice Department’s own release was not read.

Sources

  1. Justice Dept. charges doctor in $95 million skin substitute fraud scheme. Las Vegas Sun, reprinting The New York Times (Sarah Kliff). Accessed 2026-10-19. Supports: Every fact above: the August 4, 2026 charges and the $95 million figure, the description of skin substitutes, Dubin's 2025 interview account of the 60/40 arrangement, the sham invoices, the unnecessary applications, the yachts, the Legacy Medical Consultants executive charged in June and Dubin's statement that he used the products only when necessary.

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