Medicare Fraud News: $110 Million Scheme Involving Telemedicine and Durable Medical Equipment

The owner of Expansion Media and Hybrid Management Group, Steven Richardson, has agreed to plead guilty to his role in a $110 million Medicare fraud scheme involving medically unnecessary durable medical equipment, including back and knee braces. According to the U.S. Department of Justice, Medicare beneficiaries were targeted through telemarketing, and Richardson obtained signed orders from doctors and nurses who had not examined the patients and provided those orders to telemarketing companies for use in defrauding Medicare.

The conspiracy to commit fraud charge carries a maximum penalty of 10 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever one is higher. The actual sentence will be determined by a federal district court judge in accordance with federal sentencing laws and guidelines.

Read the full case from the U.S. Department of Justice.