Houston residents Bassey Monday Idiong, Linda Eteimo Ere Kendabie and Modupe Babanumi each have pleaded guilty in connection with their roles in an "arthritis kit" Medicare fraud scheme, according to a U.S. Department of Justice news release.
Mr. Idiong, the owner of B.I. Medical Supply, a Houston-area durable medical equipment company, pleaded guilty to conspiracy to commit healthcare fraud and to five counts of healthcare fraud. Ms. Kendabie, an administrative assistant at B.I. Medical and Mr. Babanumi, a patient recruiter, pleaded guilty to conspiracy to commit healthcare fraud.
The defendants admitted that B.I. Medical billed Medicare for expensive, rigid orthotics and braces that were packaged together and referred to as an "arthritis kit," at a cost of approximately $4,000 per kit, when in fact, they were supplied with different, less expensive products. The defendants also admitted that the equipment supplied was not medically necessary. In one instance, according to the plea agreements, B.I. Medical billed Medicare for an arthritis kit that included two knee braces for a beneficiary who had only one leg. In total, B.I. Medical submitted approximately $846,000 in fraudulent claims to Medicare.
Sentencing for the defendants is scheduled for June 14. They each face a maximum penalty of 10 years in prison and a $250,000 fine, per count, according to the release.
Read the DOJ's release on the Houston arthritis kit fraud scheme.
Mr. Idiong, the owner of B.I. Medical Supply, a Houston-area durable medical equipment company, pleaded guilty to conspiracy to commit healthcare fraud and to five counts of healthcare fraud. Ms. Kendabie, an administrative assistant at B.I. Medical and Mr. Babanumi, a patient recruiter, pleaded guilty to conspiracy to commit healthcare fraud.
The defendants admitted that B.I. Medical billed Medicare for expensive, rigid orthotics and braces that were packaged together and referred to as an "arthritis kit," at a cost of approximately $4,000 per kit, when in fact, they were supplied with different, less expensive products. The defendants also admitted that the equipment supplied was not medically necessary. In one instance, according to the plea agreements, B.I. Medical billed Medicare for an arthritis kit that included two knee braces for a beneficiary who had only one leg. In total, B.I. Medical submitted approximately $846,000 in fraudulent claims to Medicare.
Sentencing for the defendants is scheduled for June 14. They each face a maximum penalty of 10 years in prison and a $250,000 fine, per count, according to the release.
Read the DOJ's release on the Houston arthritis kit fraud scheme.