Corporate Compliance

Three DME facility employees plead guilty to Medicare fraud

Compliance Monitor, March 3, 2010

Three Houston residents pleaded guilty in U.S District Court for their roles in defrauding Medicare of approximately $846,000, according to a Department of Justice (DOJ) press release.

Bassey Monday Idiong, 30, Linda Eteimo Ere Kendabie, 27, and Modupe Babanumi, 42, served as owner, administrative assistant, and patient recruiter, respectively, at B.I. Medical Supply LLC (Medical), a durable medical equipment (DME) company. Kendabi and Babanumi pleaded guilty to conspiracy to commit healthcare fraud, while Idiong pleaded guilty to conspiracy to commit healthcare fraud and to five counts of healthcare fraud.

The defendants admitted to creating “arthritis kits” that supposedly supplied expensive rigid orthotics and braces at $4,000 per kit, when in fact the kits contained less expensive products. According to the DOJ, they also admitted to including equipment that was medically unnecessary. They face up to 10 years in prison and a $250,000 fine per count of healthcare fraud.

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