Corporate Compliance

Los Angeles DME owner sentenced to prison for Medicare fraud scheme

Compliance Monitor, May 12, 2010

A Los Angeles durable medical equipment (DME) company owner will serve 55 months in prison and pay more than $500,000 in restitution for his role in a Medicare fraud scheme, according to a Department of Justice (DOJ) press release.

Ajibola Adekeunle Sadiqr, 51, pleaded guilty to conspiracy to commit healthcare fraud on January 27 for submitting nearly $1 million in fraudulent charges to Medicare while owning and operating sham company, Cooper Medical Supply. Sadiqr conspired with another DME company owner and patient recruiter to purchase fraudulent prescriptions and medical documents that they used to submit false claims for DME, according to the DOJ.

According to the DOJ, more than 80% of Cooper’s beneficiaries lived over 100 miles from the facility, and the majority of beneficiaries did not require DME.

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