Navigation Links
Miami Jury Convicts Pharmacy Owner of Medicare Fraud

Eighth Trial Conviction for Medicare Strike Force

WASHINGTON, April 24 /PRNewswire-USNewswire/ -- A federal jury in Miami convicted the owner of a Miami pharmacy for his role in a $3 million Medicare fraud scheme and for money laundering, Assistant Attorney General Alice S. Fisher of the Criminal Division and U.S. Attorney R. Alexander Acosta of the Southern District of Florida announced today.

After a six day trial in Miami, the jury found Gustavo Smith, 43, guilty of all 17 counts charged against him in the September 2007 indictment, including: conspiracy to defraud the U.S. government, to commit health care fraud, and to submit false claims to the Medicare program; seven counts of health care fraud; seven counts of submitting false claims to the Medicare program; conspiracy to commit money laundering; and one count of money laundering. Sentencing has been scheduled for July 2, 2008. Smith faces a maximum of 130 years in prison.

At trial, the jury heard testimony from patients whose names were used by Smith's Medstar pharmacy to bill the Medicare program for durable medical equipment. The patients testified that they never received any equipment from Medstar and did not have a medical need for the equipment. The jury also heard testimony from several doctors who allegedly wrote prescriptions for the equipment being billed by Medstar. These doctors testified that they never wrote the prescriptions in question and never prescribed the types of equipment being billed by Medstar.

As part of the scheme, over the course of approximately one year, Smith billed the Medicare program approximately $3 million for negative pressure wound pumps, wound care supplies and pharmaceuticals.

The jury also heard evidence that Smith owned and operated another company, Orthotics Fitters, through which he was billing the Medicare program for the same equipment being billed through Medstar. During 2006, Smith caused Orthotics Fitters to bill approximately $2.9 million in fraudulent claims for negative pressure wound pumps and wound care supplies that were never actually provided to Medicare beneficiaries.

Smith's co-defendant, Friedhelm Schock, the nominee owner of Medstar, was acquitted on all charged counts.

The case was prosecuted by Trial Attorneys Hank Bond Walther and John K. Neal of the Criminal Division's Fraud Section, with the investigative assistance of the FBI and U.S. Department of Health and Human Services, Office of the Inspector General. The case was brought as part of the Medicare Fraud Strike Force that has been operating in the Miami area since March 2007. The Medicare Strike Force is led by Deputy Chief Ogrosky of the Criminal Division's Fraud Section and the office of U.S. Attorney R. Alexander Acosta of the Southern District of Florida. Since March 1, 2007, the Strike Force has brought charges against 120 defendants, resulting in more than 100 convictions to date

SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Miami Hospital Market Sees Shift in Ownership of Two Area Facilities
2. Seven Miami-Area Residents Charged in $11 Million Medicare Fraud Scheme
3. AT&T Announces Grant to Center on Aging-University of Miami Miller School of Medicine
4. CRH Medical Corporation opens new Center in Miami, Florida
5. Gentiva(R) Health Services to Present March 18th at Lehman Brothers Eleventh Annual Global Healthcare Conference in Miami
6. Miami Jury Convicts Physician and Three Business Owners of Medicare Fraud
7. CyberKnife Centers of Miami, Palm Beach and Tampa Invited to Join M.D. Anderson Cancer Center Study
8. Nine Miami Defendants in Strike Force Cases Sentenced for $56.5 Million in Medicare Fraud
9. Four Miami Health Care Company Owners Sentenced to 57 Months in Prison For Medicare Fraud
10. "High School Musicals" Corbin Bleu Joins Colgate-Palmolive, United Way and Miami-Dade Elementary School Students for Dental Health Challenge
11. Cogon Systems Supports the South Florida Health Information Initiatives 2nd Annual Health Information Exchange Summit - November 8th in Miami, FL
Post Your Comments:
(Date:11/29/2015)... , ... November 29, 2015 , ... Khanna Vision Institute ... Board of Ophthalmology on November 25th 2015. Peer Certification by the Board is ... his specialty. Certification in Ophthalmology is first obtained after the completion of three years ...
(Date:11/29/2015)... IL (PRWEB) , ... November 29, 2015 , ... Effective ... In addition starting on Black Friday Target is offering a “Buy One ... This is a rare opportunity to purchase IguanaMed at a discounted price. ...
(Date:11/28/2015)... ... November 28, 2015 , ... Trying to relax on ... the COUCH BUDDY. "I conceived of this design due to personal experience with a ... users. It promotes relaxation and convenience, as well as increases support. It also makes ...
(Date:11/27/2015)... Los Angeles, CA (PRWEB) , ... November 27, 2015 , ... ... the conversation at the recent 2015 American Dental Association meeting in Washington D.C. revolved ... can help protect a patient’s overall health. The talk stressed the link between periodontal ...
(Date:11/27/2015)... , ... November 27, 2015 , ... A team of ... ways to treat it. Surviving Mesothelioma has just posted the findings on the website. ... Hospital Zurich analyzed the cases of 136 mesothelioma patients who were treated with chemotherapy ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... November 26, 2015 ... addition of the  "2016 Future Horizons ... Cell Surface Testing Market: Supplier Shares, ... their offering.  --> ... the  "2016 Future Horizons and Growth ...
(Date:11/26/2015)... , Nov. 26, 2015 Research and ... the "Advanced Wound Care Market by Type (Dressings, ... End User (In-Patient Facility, Out-Patient Facility), and Geography - ... --> --> ... description, definition and forecast of the global advanced wound ...
(Date:11/26/2015)... ) has announced ... High Viscosity Drugs" report to their offering. ... addition of the "Self Administration of High ... --> Research and Markets ( ) ... Administration of High Viscosity Drugs" report to ...
Breaking Medicine Technology: