Corporate Compliance

News: President of DME company sentenced to 12 ½ years for Medicare and Medicaid fraud

Compliance Monitor, August 31, 2011

A U.S. District Judge in Florida August 23 sentenced Ben Bane, 64, to 12 ½ years in federal prison for conspiracy to commit healthcare fraud, healthcare fraud, and submitting false claims. His prison sentence is to be followed by three years of supervised release, according to a US Department of Justice press release.

Bane, president of Bane Medical Services, a durable medical equipment (DME) company that provided oxygen and oxygen-related services to Medicare beneficiaries, knowingly broke a Medicare rule prohibiting DME companies from performing the qualification testing for oxygen. According to the DOJ, Bane Medical staff:

  • Performed the wrong kinds of tests and lied to physicians about them
  • Falsified test results to make it appear that patients qualified for Medicarereimbursed oxygen when they did not
  • Forged physicians’ signatures on Certificates of Medical Necessity

Bane was also ordered to pay $7 million in restitution, a $3 million fine, and a $1,000 special assessment. The court also entered a money judgment in the amount of $5,800,000, representing the proceeds of the healthcare fraud.

Read more on the Department of Justice website.


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