Corporate Compliance

DME company owner sentenced for Medicaid fraud scheme

Compliance Monitor, January 4, 2012

U.S. District Judge Grey Miller of the Southern District of Texas sentenced the former owner of two Houston DME companies to 12 years in federal prison for his involvement in a Medicaid fraud scheme, according to a December 21, 2011 Department of Justice press release.

The judge also ordered the defendant, Benjamin Essien, to pay $1,455,837.91 in restitution to the Texas Medicaid program. Essien’s father and sister, Bassey Essien and Rose Essien, previously were found found guilty for their participation in the scheme and will be sentenced this month.

Court documents indicate that between April 2004 and February 2010, Essien submitted approximately $2,341,293.64 in Medicaid claims for adult incontinence supplies that were never provided to Medicaid beneficiaries or that cost less than the amount billed. Medicaid subsequently paid Essein approximately $1,455,837.91 before investigators uncovered the scheme.

Read more on the Department of Justice website.

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