A $20 Million Lie

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Cropped shot of a doctor talking to a senior patient in a clinic

Dr. Richard Davidson, 42, of Florida has been sentenced to six years behind bars for conspiring with others to commit healthcare fraud. (Unfortunately, he is just one among many fraudsters who enjoy taking government healthcare benefits from those who truly need them.)

Davidson worked with co-conspirators to create a conglomerate of durable medical equipment (DME) supply companies. The group secured billing privileges by lying to Medicare. (Nothing is truly secure if its foundation is built on a lie.)

To conceal the true ownership, the companies were placed in the names of straw owners. The conspirators were able to secretly gain control of the companies, enabling them to submit a high volume of illegal DME claims. (Little did they know, the court would soon be in charge of determining their prison sentences.)

The conspirators used bribes and kickbacks to submit more than $20 million in illegal DME claims. “Marketers” generated claims by making them appear as “telemedicine” and doctors were bribed to sign the supportive orders.

This illegal scam caused Medicare and the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA) to pay out $10 million within one year of the establishment of the fraudulent chain of companies.

Davidson pleaded guilty to Medicare fraud and has been sentenced to six years in federal prison. He must also forfeit $650,000 in funds traceable to the offense or as substitute assets.  The court ordered a $2.47 million money judgment and restitution of $10.72 million. (The court also took away Davidson’s medical license. Sounds like justice was served in the end.)

Today’s Fraud of the Day comes from a Department of Justice press release, “Former Delray Beach Doctor Sentenced to Six Years in Federal Prison For $20 Million Health Care Fraud Scheme,” dated July 26, 2021.

Tampa, Florida – U.S. District Judge William Jung has sentenced Dr. Richard Davidson (Delray Beach, 42) to six years in federal prison for conspiracy to commit health care fraud. As part of his sentence, the court ordered Davidson to forfeit approximately $650,000 in funds traceable to the offense or as substitute assets. The court also entered a money judgment of $2.47 million and ordered $10.72 million in restitution. Davidson lost his medical license due to his conviction.

Davidson had pleaded guilty on September 16, 2020.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.