Corporate Compliance

Houston DME workers charged in adult urinary incontinence fraud scheme

Compliance Monitor, June 30, 2010

A Houston federal grand jury charged Bassey Essien and Ebong Akpan for multiple counts of healthcare fraud in connection to two durable medical equipment (DME) companies, according to a Department of Justice (DOJ) press release.

Essien, 60, and Akpan, 35, allegedly worked for DME companies, Logic World Medical and Roben Medical, where they routinely billed Medicaid beneficiaries for unnecessary adult urinary incontinence supplies. Each is accused of billing Medicaid for the maximum allowed amount of extra large diaper briefs, which have the highest Medicaid reimbursement rate, without consideration to the actual size needed to fit the beneficiary, according to the DOJ. Essien and Akpan also allegedly billed Medicaid for delivering quantities of adult diapers that exceeded the amount they purchased from wholesalers.

Essien and Akpan billed Medicaid approximately $2.3 million in fraudulent and false claims, according to the DOJ. Medicaid reimbursed them for approximately $1.5 million. Essien and Akpan face a maximum imprisonment of 10 years and a $250,000 fine.

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