The Health Law Offices of Anthony C. Vitale
The owners and operators of two Dallas, Texas-based durable medical equipment companies recently were convicted of one count of conspiracy to defraud the United States and to pay and receive healthcare kickbacks and one count of conspiracy to commit money laundering. They now face up to 25 years behind bars.
Leah and Michael Hagen, owners of Metro DME Supply LLC and Ortho Pain Solutions, billed Medicare Parts B and C approximately $59 million and were paid approximately $27 million.
According to the government, the couple paid a fixed rate per DME item in exchange for prescriptions and paperwork completed by telemedicine doctors that were used to submit false claims to Medicare. It was alleged that defendants paid illegal bribes and kickbacks and wired money to their co-conspirator’s call center in the Philippines that provided signed doctor’s orders for orthotic braces.
The couple was indicted in March 2019 on one count of conspiring to defraud the United States and to pay and receive healthcare kickbacks under the Anti-Kickback Statute. On September 12, 2019, the government filed a superseding indictment that added a count against the Hagens for conspiring to commit money laundering. Evidence at the trial showed that the defendants wired millions of dollars in proceeds into their personal bank accounts, in the U.S. and overseas.