Another Piece of the Fraud Puzzle


One of the largest Medicare fraud schemes in history bilked the government of approximately $375 million over a six-year period and allegedly involved 11,000 home health care patients and 500 health care agencies. According to an article in D Healthcare, another piece of this enormous fraud puzzle was solved when a Texas man was sentenced for his part in the scam against the government benefits program.

The story states that a 57-year-old man worked for a durable medical equipment company. He partnered with an owner and operator of another durable medical equipment company, who paid him kickbacks to forge a doctor’s signature on prescriptions and certificates of medical necessity. His forgery cost Medicare more than $580,000. The forged doctor’s signature belonged to the man who is accused of being the mastermind behind one of the largest Medicare fraud scams in history. (The scheme was so big that home health care agencies in Dallas and Houston were not allowed to bill the Centers for Medicare and Medicaid Services (CMS) for six months.)

The forging fraudster pleaded guilty to one count of conspiracy to commit health care fraud and will be required to pay $317,779 in restitution. The co-conspirator owner of the other durable medical equipment company is already serving a 36-month federal prison sentence related to this case. The article states that the criminal will be deported following his prison term. The man, allegedly in charge of the single largest fraud amount orchestrated by one doctor, has a trial set for January 2015.

In this case, there were many co-conspirators involved, making it a very complex case to solve. Just as there are many pieces required to make one puzzle picture, the Medicare Strike Force will continue to track down criminals until they get the picture that fraud will not be tolerated. Let’s hope those who are convicted get the sentences they deserve.

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Man Ordered to Pay $74,000 in Medicaid Fraud Case,” written by Dave Kolpack and published in The Bismarck Tribune on April 28, 2014.

FARGO — A North Dakota man accused of lying about his mother’s finances so she would qualify for Medicaid benefits was ordered Monday to reimburse the government for her expenses and pay a civil fine.

Authorities say Donald Hochhalter, 65, of New Leipzig, understated the value of his mother’s assets so she would qualify for government payments when she moved into a nursing home. He pleaded guilty to a misdemeanor charge of making false statements.

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.