Two Individuals Sentenced for Fraudulent Claims

Individuals associated with a Rogers-based medical supply and billing company recruited doctors to dispense pain creams and patches to their workers’ compensation patients by offering them a split of the profits. The company acted as the billing agent for the doctors, handling all the paperwork and submitting the allegedly fraudulent claims to both the U.S. Department of Labor, Office of Workers’ Compensation Programs, which covers all federal employees, and to private insurers as well. In exchange, the company paid them 50 to 55 percent of the profits collected from successfully billing insurers, at markups of 15 to 20 times what the medications actually cost.

One man pled guilty to conspiracy and was sentenced to 32 months in the Federal Bureau of Prisons.  He must also pay restitution of $2,353,592.  A second man pled guilty to conspiracy and was sentenced to 48 months in the Federal Bureau of Prisons.  He must also pay restitution of $3,525,220.

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