All Case Results

United States v. P.C.

Charge: Conspiracy to Pay Kickbacks; Conspiracy to Commit Health Care Fraud
Southern District of Texas - Houston
February 2022
federal
Worst Case Scenario:
Up to 10 years imprisonment, full restitution on 59.9 million dollars in fraudulent Medicare claims, and permanent exclusion from federal health care programs
Actual Results:
Sentenced to 90 months (7.5 years) — below the upper range of guidelines; restitution tied to actual Medicare losses rather than total billings

Arrested For:

Conspiracy to Pay Kickbacks and Conspiracy to Commit Health Care Fraud. Defendant owned three DME companies that submitted 59.9 million dollars in false Medicare claims for medically unnecessary orthotic braces. Defendant concealed ownership through shell entities and paid kickbacks to others disguised as marketing fees.

What Was Done:

The defendant operated a complex scheme involving multiple durable medical equipment companies that submitted false claims to Medicare and engaged in kickback schemes. The fraud involved 59.9 million dollars in billed claims with sophisticated concealment through corporate restructuring and disguised payments.

Unique Approach:

The critical sentencing argument focused on the distinction between total billings and actual Medicare payments. Counsel successfully argued that the loss calculation should be based on what Medicare actually paid to the defendant, not what was billed to the government. This approach significantly reduced the loss amount used in the sentencing calculation and shifted the restitution obligation away from full billing amounts.

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