DME company owner convicted on 18 counts, receives 80-month sentence

The owner of a medical equipment supply company faces 80 months—just under seven years—in prison and was ordered to pay restitution of about $2 million after directing a fraud scheme. The New Orleans-based company, called Psalms 23 DME LLC (Psalms), used patient recruiters to get the names and billing information of local Medicare beneficiaries, and then fraudulently billed Medicare for durable medical equipment (DME) for these patients.

Scheme

The government’s evidence at the trial showed that Psalms billed for equipment from power wheelchairs to back braces, mostly for beneficiaries that did not need, want, or even receive the equipment. Most of the $3.3 million in claims billed were fraudulent, and the company received $2 million in payment on these claims.

The owner was convicted of 18 counts of fraud, conspiracy, and other charges following a five-day trial.