Convicted doctor quits walk-in clinic

Days after the Virginia Board of Medicine denied an appeal to reinstate his medical license, Dr. Maruthi S. Manney quit his administrative position at Culpeper Medical Walk-In Clinic.

According to Dr. Venkateswar R. Veerapalli, the physician who opened the clinic May 6, tension began to build after Manney’s case became public last month.

Manney and his wife, who worked in the front office, joined the clinic in June following federal prison sentences based on their mail and wire fraud convictions four years ago in Maryland.

“After the article, he’s no longer with us,” Veerapalli said, referring to the Star-Exponent’s coverage of Manney’s public hearing in Richmond last month.

Veerapalli said Manney left the practice — located at 451 James Madison Hwy. — before the two men could address the issue.

“He (felt) that I was not comfortable, and before I could say anything he removed himself,” Veerapalli said Wednesday, adding that another receptionist has replaced Manney’s wife.

Last month, the board also ordered Manney, 51, to remain on indefinite suspension until he proves he’s competent to practice medicine.

The Manneys could not be reached for comment.

Background
Manney and his wife, Lakshmi Manney, formerly of Montgomery Village, Md., were convicted in 2005 of defrauding employee groups that used their third-party, self-funded health benefits plan. A federal jury sentenced Dr. Manney in June 2006 on one felony count of wire fraud and eight felony counts of mail fraud.

He received a three-year prison sentence and is on three years of supervised probation; he was ordered to pay $605,932 in restitution and $900 in assessment fees.

After serving 30 months in a federal prison in Kentucky, Dr. Manney landed an administrative position in the Culpeper clinic. But because of his felony conviction, Manney could not practice medicine.

Lakshmi Manney was also convicted of mail fraud but acquitted on the wire fraud charge. She received a two-year sentence in federal prison.

According to court records, the Manneys never mailed checks to clients and failed to pay medical claims, leaving more than 400 people without insurance benefits.

A change of opinion
Last month, Veerapalli offered his support to Dr. Manney, calling him “a good doctor with good credentials.” But that was before he apparently learned more about the events leading to Manney’s 2005 arrest and 2006 conviction.

“I don’t know what happened,” Veerapalli said. “I have nothing to do with his company. What he told me was he left it up to his administrators. I just have to believe him, and I know it’s a little bit naïve.”

Veerapalli said he knew Manney “got into trouble,” but said he just wanted to help out a friend: “It was just to give him some kind of (job) until he got his license. He has two kids and no means to support his family.”

Local support
Culpeper resident Sharon McCray, who has known Veerapalli for about four years, vouched for his credibility.

McCray used to drive her mother to Manassas for a year on a weekly basis in order to have her lung cancer treated.

“When other doctors said she had eight months to live — God and Dr. Veerapalli are the reasons why she’s alive today,” McCray said. “His knowledge of what to do to treat her was wonderful.”

Today, McCray’s mother is in remission.

“Dr. Veerapalli is an excellent doctor,” she said. “He cares about his patients.”