DME supplier sentenced to 37 months in $2.6M health care fraud scheme

A Cuban national was sentenced to 37 months in prison for his role in a health care fraud scheme in the greater Tampa, Florida, area. The 47-year-old man was charged by indictment, returned on July 31, 2013, with 14 counts of health care fraud. He had been a fugitive since his 2013 indictment until his arrest on October 9, 2015, when he arrived in Miami on a flight from Cuba. 

The president and owner of G.R. Services Equipment & Supplies Inc., a Largo, Florida, company that purported to provide durable medical equipment (DME) to Medicare beneficiaries pleaded guilty to conspiracy to commit health care fraud in March 2016 and was sentenced on June 13, 2016. In his plea agreement, the DME company owner admitted that from May 2013 through July 2013, his company submitted approximately $2,579,695 in false and fraudulent claims to Medicare seeking reimbursement for DME not legitimately prescribed by doctors and not provided to beneficiaries.

In addition to his sentence the judge also ordered the owner to pay $918,402 in restitution and to forfeit the same amount. federal law enforcement agents previously executed a seizure warrant on the company’s bank account, resulting in the seizure of approximately $243,339 in proceeds of the health care fraud scheme.

Specifically, the company sought reimbursement for thousands of dollars of negative pressure wound therapy electrical pumps and sterile collagen dressings purportedly provided to Medicare beneficiaries in May and June 2013 that were not legitimately prescribed by doctors or provided to beneficiaries.