Corporate Compliance

Houston physician and DME company owner plead guilty to $2.8M Medicare fraud scheme

Compliance Monitor, June 23, 2010

A Houston-area physician and a durable medical equipment (DME) owner pleaded guilty in U.S. District Court for submitting more than $2.8 million in fraudulent claims to Medicare, according to a Department of Justice (DOJ) press release.

Former physician John Edward Perry III, 47, allegedly prescribed medically unnecessary DME and supplies to Medicare beneficiaries through Sefan Medical Supply, owned by Kate Ose Olear, 43.

Olear billed Medicare for arthritis kits for more than 683 beneficiaries—some of whom were deceased, according to the DOJ. Of the $2.8 million in claims the pair submitted, Medicare paid approximately $1.7 million.

Perry and Olear each face a maximum of 10 years in prison and a $250,000 fine.

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