A former medical supply company owner in Virginia Beach, Va., has been sentenced to 51 months in prison in connection with a multimillion dollar healthcare fraud scheme, the U.S. Justice Department said Feb. 24.
Frank Alosa, 49, of Kentucky, and a co-conspirator were found guilty of operating Merchant Card Solutions Med Brace Shop, a durable medical equipment supply company, for the purpose of submitting false and fraudulent claims for reimbursement to Medicare, Tricare and Virginia Medicaid.
Throughout 2018 and 2019, Mr. Alosa and the co-conspirator purchased illegal orders for "unwanted" and "medically unnecessary" durable medical equipment to fraudulently bill federal healthcare programs over $8 million. Mr. Alosa also concealed the co-conspirator’s role in the scheme from these programs due to his criminal background, which prohibited him from serving as an owner or managing employees.