Daniel Thomason Smith, owner of DTS Medical Supply in Devine, Texas, has been sentenced to 27 years in prison for his role in a $3.5 million healthcare fraud scheme, according to the Department of Justice.
In June, Mr. Smith was convicted of 11 counts of aiding and abetting aggravated identity theft, eight counts of aiding and abetting false statements related to a healthcare matter and one count each of conspiracy to commit healthcare fraud and aiding and abetting healthcare fraud.
Evidence presented during the trial showed Mr. Smith paid commission to individuals to recruit customers. One of Mr. Smith's co-conspirators used the information collected from customers to submit fraudulent claims to Medicaid and Medicare for powered wheelchairs. As part of the scheme, which ran from May 2006 to January 2010, Mr. Smith and his co-conspirators included physician names to support the false claims for reimbursement even though the physicians never prescribed a powered wheelchair for the customers. Although DTS billed Medicare and Medicaid for powered wheelchairs, the company delivered less expensive powered scooters to customers, according to the DOJ.
In addition to his prison term, Mr. Smith was ordered to pay $3.3 million in restitution.
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