Corporate Compliance

Texas DME company owner found guilty of fraud, identity theft

Compliance Monitor, October 12, 2011

Juan De Leon Jr., 41, of Edinburg, TX, could face up to 12 years in federal prison for conspiracy, healthcare fraud, and aggravated identity theft, according to the U.S. Attorney for the Southern District of Texas.

De Leon, who owned and operated United DME, Inc., was convicted of fraudulently billing Medicare and Medicaid for services and devices that were either not delivered to beneficiaries or deemed not medically necessary, the U.S. attorney said in a September 29 press release. Staff fraudulently billed for a range of services and devices that resulted in the payment of hundreds of thousands of dollars, according to the press release. The jury found that De Leon billed for expensive power wheelchairs and instead delivered less expensive models or scooters to beneficiaries. The company sometimes submitted claims after beneficiaries had died.

De Leon is currently in federal custody pending formal sentencing December 8.

Read more at the Southern District of Texas Department of Justice Website.

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