A US federal judge in Texas has sentenced two individuals who owned and operated a medical equipment company to more than 12 years in prison each for operating a $27 million fraud scheme against Medicare, the Justice Department said on Thursday
WASHINGTON (Pakistan Point News / Sputnik - 16th December, 2021) A US Federal judge in Texas has sentenced two individuals who owned and operated a medical equipment company to more than 12 years in prison each for operating a $27 million fraud scheme against Medicare, the Justice Department said on Thursday.
"From March 2016 to January 2019, the defendants paid kickbacks and bribes to their co-conspirator's call center in the Philippines in exchange for signed doctors' orders for DME (durable medical equipment) that were used to submit false claims in excess of $59 million to Medicare," the Justice Department said in a press release.
According to the trial evidence, Leah Hagen, 50 of Arlington, Texas, and Michael Hagen, 54, a citizen of Austria and Arlington resident, owned and operated two DME companies - Metro DME Supply LLC and Ortho Pain Solutions. From those claims, Medicare paid the defendants more than $27 million, the release said.
"On July 8, the Hagens were convicted following an eight-day trial on charges of conspiracy to defraud the United States," the release said. "The Hagens were sentenced by US District Judge Jane Boyle of the Northern District of Texas, who also ordered them to pay $27,104,359 in restitution."
The defendants transferred millions of Dollars overseas to purchase a home in Spain and to conceal the payments of kickbacks and bribes from the authorities, they signed sham contracts that disguised payments as marketing and business process outsourcing, the release added.
