David Laufer, the former chief of the prosthetics and orthotics department at Walter Reed National Military Medical Center, was sentenced to prison, the Justice Department said Sept. 30.
Four things to know:
- Mr. Laufer will serve eight months in federal prison and one year of supervised release for accepting gratuities as a public official, the Justice Department said.
- David Laufer was chief of prosthetics and orthotics at Walter Reed in Bethesda, Md., from 2009 through May 2019. According to his plea agreement, Mr. Laufer worked with an unnamed company that was paid by the federal government to provide prosthetics and orthotics equipment to his department at Walter Reed. The unnamed company was awarded multiple contracts and resold materials purchased from other manufacturers to Walter Reed at higher prices.
- According to his plea agreement, Mr. Laufer admitted to restricting which manufacturers could sell to the unnamed company, knowing it would result in higher prices. The actions led the company to receive more than $25 million. In exchange, Mr. Laufer admitted he received money, travel and sporting event tickets from the company, and did not disclose the gifts.
- Timothy Hamilton, who also worked in the Walter Reed prosthetics and orthotic department, is expected to be sentenced for his role in November. Mr. Hamilton pleaded guilty to conspiracy to commit healthcare fraud and to acts affecting financial interest.