New Jersey medical equipment company owner pleads guilty to $21M Medicare fraud scheme

The Lakewood, N.J.-based owner of a medical equipment company pleaded guilty to healthcare fraud for his role in a scheme to defraud Medicare. 

According to a June 30 news release from the Justice Department and court documents, Alexander Schleider operated two durable medical equipment companies. Mr. Schleider paid kickbacks and bribes to companies operating marketing call centers in exchange for Medicare patients' information. 

These patients received prescriptions for medical equipment through telemedicine providers. Mr. Schleider billed these claims to Medicare, regardless of their medical necessity, the Justice Department said. 

In total, Mr. Schleider billed $21.7 million in fraudulent claims to Medicare and other benefit programs, according to the news release. He also pleaded guilty to wire fraud for misuse of COVID-19 relief funds. 

According to previous court documents, Mr. Schleider pleaded guilty to wire fraud and real estate fraud in 2014. To conceal his convictions, his durable medical equipment companies were operated under his spouse's name. 

Mr. Schleider could face up to 20 years in prison for healthcare fraud and wire fraud if convicted, according to the release. 

 

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