DME Supply Company Owner Sentenced to 97 Months in Prison for Medicare Fraud

A federal judge sentenced the owner and operator of a durable medical equipment (DME) supply company to 97 months in prison and three years of supervised release for his role in a Medicare fraud scheme. Kenny Msiakii, who owned and operated Joy Supply and General Services in Shreveport, Louisiana, fraudulently billed Medicare for $6.7 million in claims over the course of two years. In addition to his sentence, Msiakii was ordered to pay $2.5 million in restitution.

DME Fraud

Msiakii’s company provided orthotics and other DME, including power wheelchairs, to Medicare beneficiaries, He submitted claims to Medicare for various DME items that were not medically necessary and, in some instances, were never provided. For example, Msiakii billed the Medicare program for orthotic devices that were components of “arthritis kits” which were not medically necessary and were inappropriate for arthritic conditions, as they contained several different orthotic devices including braces for both sides of the body and related accessories such as heat pads. He collected $3.6 million in Medicare payments as a result. Msiakii was found guilty of eight counts of health care fraud on December 13, 2012.

Msiakii’s transgressions were uncovered by the Medicare Fraud Strike Force, an interagency group that targets Medicare fraud, with operations in nine cities across the country, including Houston, Texas, and Baton Rouge, Louisiana. Strike Force operations, which are a collaboration between the Department of Justice (DOJ) and HHS, along with numerous federal, state, and local investigators, have led to charges against more than 1,500 defendants who have falsely billed more than $5 billion since March 2007.