Owner faces payback for falsely claiming to supply medical equipment

Fraudulently billing Medicare for $4 million for power wheelchairs, back braces, and knee braces that were medically unnecessary, not provided to beneficiaries, or both, resulted to time in prison and money penalties for a medical supply company owner. A jury trial on November 6, 2015, resulted in the owner’s conviction on six counts of health care fraud, a sentence of 60 months in prison, and a judicial order for the owner to pay $1,266,860 in restitution for his role in the scheme.

According to evidence presented at the trial, between January 2006 and October 2009, the owner created false documentation to support his false billing claims, including fake reports of home assessments that never occurred and signed documents stating that equipment was delivered that was never delivered. In addition, power wheelchairs were delivered to beneficiaries that were able to walk without assistance.

The Federal Bureau of Investigation and the HHS-Office of Inspector General investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. The case was prosecuted by Ritesh Srivastava and Claire Yan of the Fraud Trial Attorney section of the Department of Justice.