Corporate Compliance

DME provider sentenced to 63 months for creating and submitting false claims

Compliance Monitor, March 11, 2009

U.S. District Judge Steven D. Merryday sentenced Yosdan Castellanos to 63 months in prison for creating and submitting phony claims to Medicare for reimbursement, according to a Department of Justice press release.
 
According to the press release, Castellanos was the owner and president of Florida Med Services, Inc., based in Tampa, FL. The Department of Justice contends Florida Med Service pretended to be a durable medical equipment provider to Medicare beneficiaries, even maintaining a fake store front, but never provided equipment to anyone.
 
According the press release, Florida Med Services used identification information for Medicare beneficiaries and physicians to create false documents for medical equipment totaling more than $2 million. The company received approximately $700,000 from the scheme, which the judge ordered Castellanos to repay.

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