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Medical Equipment Company Owner Pleads Guilty to Fraud Scheme Involving Nutritional Supplies and "Arthritis Kits"
Date:11/2/2009

ns, even though the defendant admitted that he knew the kits were not medically appropriate for such conditions.

Jhagroo admitted to billing Medicare approximately $4,000 per kit, and to providing beneficiaries with inferior kits consisting of less expensive, lightweight neoprene sleeves, which were often of an improper size for the beneficiary.

In his plea, Jhagroo admitted that in August of 2004, he and a codefendant agreed to a kickback arrangement whereby he would pay the codefendant in exchange for the referral of Medicare beneficiaries for whom he would supply DME, and then bill Medicare for the equipment through Trucare. Jhagroo admitted that the codefendant would recruit Medicare beneficiaries for the purpose of filing claims with Medicare for DME that was medically unnecessary or was not provided.

The case is being prosecuted by Trial Attorney Katherine Houston of the Criminal Division's Fraud Section, and was investigated by the FBI and HHS, Office of the Inspector General.

The case was brought as part of the Medicare Fraud Strike Force (MFSF), supervised by the Criminal Division's Fraud Section and U.S. Attorney Tim Johnson of the Southern District of Texas.

Since the inception of Strike Force operations in March 2007 - Miami (Phase One), Los Angeles (Phase Two), Detroit (Phase Three) and Houston (Phase Four) - the Strike Force has obtained indictments of 331 individuals and organizations that collectively have billed the Medicare program for more than $720 million. In addition, HHS's Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov

Each of the Strike Fo
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SOURCE U.S. Department of Justice
Copyright©2009 PR Newswire.
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