Calgary dentist guilty of decade-long insurance fraud handed 3-year sentence

A Calgary dentist received a three-year prison sentence after pleading guilty to defrauding five insurance companies of nearly $700,000 over a decade. Alena Smadych, 55, previously owned All About Family Dental and sold the practice last year for $3.5 million.

A Decade of Deception

The investigation began in 2021 when Sun Life identified “strange billing practices” at Smadych’s clinic. These practices included billing for repeat root canals and fillings. An agreed statement of facts revealed Smadych admitted to submitting over $684,000 in falsified billings between 2013 and 2023.

Did You Know? All About Family Dental was once the highest billing clinic in Canada for root canals.

Despite knowing an investigation was underway, Smadych continued the fraudulent activity for an additional two and a half years. Court records show clinic billings significantly increased at the end of each calendar year; for example, on December 24, 2020, the clinic submitted $19,000 in claims for 17 patients, with Smadych as the sole billing dentist.

Continued Fraud and Lack of Remorse

Initially, Smadych admitted to $125,000 in fraudulent claims to Sun Life and Blue Cross. However, following her initial plea, three additional insurance companies came forward, leading to an admission of another $558,000 in fraudulent billings. Prior to sentencing, Smadych reportedly paid an additional $500,000 to Sun Life related to a separate fraud allegation.

Expert Insight: The continuation of the fraud even while under investigation suggests a calculated risk assessment by the defendant, potentially driven by financial motivations or a disregard for the legal consequences.

A forensic psychologist, Dr. Patrick Baillie, reported that Smadych struggled to accept responsibility for her actions, blaming a receptionist and the new clinic owner for her legal troubles. She reportedly stated, “I didn’t think this was so serious… I know lots of people doing this.”

Sentencing and Potential Future

Despite a last-minute attempt by her lawyer, Alain Hepner, to secure an adjournment due to reported back pain, Justice Gord Wong denied the request. Hepner had proposed a two-year conditional sentence, allowing Smadych to serve her sentence at home. Prosecutor Greg Whiteside recommended a two- to three-year prison sentence, which was ultimately imposed.

Smadych is no longer practicing dentistry in Alberta. However, she has expressed interest in practicing in Australia, where her son is studying dentistry. This represents a potential, but not guaranteed, future path.

Frequently Asked Questions

What was the total amount of money involved in the fraud?

Smadych defrauded five insurance companies out of nearly $700,000 over a decade, with admitted falsified billings totaling over $684,000 between 2013 and 2023, plus additional admissions of fraud totaling over $683,000.

Did Smadych accept responsibility for her actions?

According to a pre-sentence report, Smadych struggled to accept full responsibility, blaming others for the fraud.

What was the outcome of the defense’s request for an adjournment?

Justice Gord Wong denied the defense’s application for an adjournment, stating the prison system could handle Smadych’s reported back pain.

How might this case impact scrutiny of billing practices within the dental industry?