A Connecticut man pleaded guilty to his role in a $7.8 million durable medical equipment fraud and kickback scheme.
Jesse Foote, 58, of Fairfield, Conn., conspired with overseas telemarketing call centers, DME suppliers, telemedicine companies, and physicians to submit fraudulent claims to Medicare, Tricare, and private insurers, according to an Aug. 21 Justice Department news release. The scheme occurred from December 2017 to March 2021.
Mr. Foote controlled a marketing company that he used to purchase patient leads from the overseas telemarketing companies, which included information about Medicare and other beneficiaries and prewritten physician orders for DME, according to the release. The telemarketing call centers targeted Medicare beneficiaries and others with health insurance to persuade them to accept DME, including orthotic braces, regardless of medical necessity.
Mr. Foote allegedly paid bribes and kickbacks to these companies, which then paid bribes and kickbacks to physicians to obtain orders for DME based on the leads, according to the release.
The physicians often approved the orders without having any contact with the beneficiary, according to the release. Mr. Foote then sold the signed orders to others, with whom he had a kickback arrangement, who submitted fraudulent claims to payers.
Mr. Foote pleaded guilty to conspiracy to violate the federal Anti-Kickback Statute and conspiracy to commit healthcare fraud. He faces a maximum of 15 years in prison.