The owner of a durable medical equipment company pleaded guilty to his role in a scheme to defraud Medicare and Medicare Advantage of more than $12.4 million.
Reginald Fullwood Jr., 59, of Madison, Miss., pleaded guilty to conspiracy to defraud the U.S., according to an Aug. 28 Justice Department news release. He paid kickbacks to a marketer in exchange for completed physician's orders so that his company could bill Medicare and Medicare Advantage for orthotic braces that were medically unnecessary or ineligible for reimbursement.
When Medicare opened an investigation into his company, Mr. Fullwood opened another entity in the name of a nominee owner and again paid kickbacks to marketers in exchange for physicians’ orders, according to the release.
Of the more than $12.4 million that was billed to Medicare and Medicaid, the companies were reimbursed more than $6.4 million, according to the release.
Mr. Fullwood is scheduled to be sentenced Dec. 4 and faces up to five years in prison.