Florida Man Pleads Guilty to $42 Million Medicare Fraud Involving Medical Equipment and Cancer Genetic Testing
The U.S. Department of Justice announced on November 13 that Chad Monroe, 48, of Tarpon Springs, Florida, pleaded guilty that day to a $42 million fraud on Medicare involving false claims for durable medical equipment and cancer genetic testing, and also pleaded guilty to fraudulently obtaining a Paycheck Protection Program loan.
According to court documents and statements made in court, Monroe conspired with others to submit fraudulent claims for durable medical equipment, such as knee, wrist, ankle and back braces, and cancer genetic testing that Medicare beneficiaries did not want or need. Monroe and his co-conspirators opened three companies, Maksix Medical Products Inc., Orthotech Atlanta, LLC and 1st Choice Medical Supply LLC, which they used to submit over $26 million in false and fraudulent claims to Medicare, Medicare Advantage plans and TRICARE.
The department said Monroe directed co-conspirators to lie on Medicare enrollment documents to hide his ownership of and role at the companies, and paid purported telemedicine companies illegal kickbacks to generate doctors' orders. Through his company Health and Life Networking LLC, he sold doctors' orders for genetic testing to co-conspirator laboratories, which paid him over $15 million in illegal kickbacks.
Monroe also directed a co-conspirator to submit a fraudulent PPP loan application for over $30,000, lying about the ownership of 1st Choice Medical Supply LLC. He used the proceeds to fund a lavish lifestyle, including a 47-foot yacht valued at over $600,000 called The Rogue Shark, a Cadillac Escalade and other luxury vehicles. The government seized the yacht and more than $1 million in connection with the charges.
Monroe pleaded guilty to one count of conspiracy to commit health care fraud and one count of wire fraud. A sentencing date has not been set. He faces a maximum of 10 years in prison on the health care fraud conspiracy count and 30 years on the wire fraud count, with the sentence to be determined by a federal district court judge.
The case was investigated by the HHS Office of Inspector General, the FBI Tampa Field Office, the Defense Criminal Investigative Service and IRS Criminal Investigation, and is being prosecuted by the Health Care Fraud Section of the Justice Department's National Fraud Enforcement Division.
(Source: U.S. Department of Justice)
Source: U.S. Department of Justice
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Photo: 图：位于华盛顿的美国司法部总部大楼。GSM 联邦核心机构固定图库，公共领域。 / Photo: U.S. Department of Justice headquarters in Washington. GSM federal core asset pack, public domain.
