Scooter telemarketer gets 92 months for Medicare fraud

by bvernia | September 8th, 2009

The US Attorney in WDVA announced on September 3 the sentencing of Michael Cowen, a partner in a Durable Medical Equipment company based in Ohio which used television advertisements to lure Medicare beneficiaries.

In the scheme, for which Cowen’s business partner and wife had previously pleaded guilty, involved a bait-and-switch tactic which resulted in the patients receiving a higher-reimbursement 200-lb motorized wheelchair instead of a lightweight power scooter (the WDVA press release has photographs of both models). Delivery employees were instructed to deceive patients into accepting the wheelchairs, telling them that the scooters were prone to tipping, that their doctors knew what they needed, and that they would have to pay a restocking charge (prohibited under Medicare) if they sent the chair back.

In addition to the three convictions, the US obtained a criminal forfeiture of $1.8 million.

AUSAs Patrick Hogeboom III and Charlene Day handled the case for the US.

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