Corporate Compliance

DME company employees convicted of healthcare fraud

Compliance Monitor, December 29, 2010

A jury found Ben Bane, 64, Greg Bane, 40, and Tracy Bane, 40, guilty of one count of conspiracy to defraud the United States, five counts of healthcare fraud, and four counts of making false claims to the government, according to a Department of Justice (DOJ) press release.

According to the DOJ, the trio worked for Bane Medical Services, a durable medical equipment (DME) company that provided oxygen and oxygen-related services to Medicare beneficiaries. Ben Bane was the company’s president, Greg Bane was the vice president for operations, and Tracy Bane was the billing supervisor.

Bane Medical Services violated a Medicare rule that prohibits oxygen service providers from determining whether the patient needs their services. The company also performed inappropriate tests and lied to physicians about it, falsified test results, and forged physician signatures on certificates of medical necessity.

Each of the Banes faces a maximum sentence of 10 years in federal prison for each of the healthcare fraud charges, and 5 years in federal prison for each of the conspiracy and false claims charges.

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