Former Owner of Telemedicine Companies Sentenced to Two Years in Prison for $110 Million Medicare Fraud Scheme

The former owner of a network of telemedicine companies has been sentenced to two years in federal prison for orchestrating a scheme that billed Medicare more than $110 million for medically unnecessary durable medical equipment and genetic testing. The defendant, who operated the companies from Massachusetts, was also ordered to pay restitution and forfeit assets tied to the fraud.

According to court documents, the scheme relied on a nationwide network of telemarketers and call centers that targeted Medicare beneficiaries with aggressive sales pitches. The telemarketers persuaded seniors to accept orthotic braces and genetic tests they did not need, then routed them to telemedicine providers who signed orders without ever examining the patients—and in many cases, without ever speaking to them.

The defendant’s companies served as the hub connecting marketers, providers, and DME suppliers, taking a cut of each fraudulent claim submitted to Medicare. The scheme also involved illegal kickback payments to marketers and providers in exchange for patient referrals, violating the Anti-Kickback Statute. In total, the operation caused more than $110 million in losses to Medicare.

The defendant pleaded guilty to conspiracy to commit health care fraud and was sentenced in the District of Massachusetts. This case reflects the government’s sustained focus on telemedicine-enabled fraud, particularly schemes that exploit seniors through call centers and use licensed providers as rubber stamps. The investigation was conducted by the HHS Office of Inspector General and the FBI. Individuals with knowledge of similar Medicare fraud or illegal kickback arrangements are encouraged to consult experienced whistleblower attorneys to explore potential False Claims Act remedies.