Fourteen defendants were charged in a 324 count indictment for participating in a Medicare kickback scheme. The indictment alleges that three therapy companies paid kickbacks to assisted living facilities for access to patients. The therapy companies then billed Medicare for medically unnecessary and non-qualifying therapy.
In a separate indictment announced on August 5, seven individuals were charged in another Medicare fraud scheme. According to prosecutors, these individuals formed bogus durable medical equipment (DME) companies which billed Medicare for DME services which were not provided.
The United States Attorney's Office for the Southern District of Florida has posted both the August 4, 2004 press release on Medicare kickback scheme and the August 5 press release on DME fraud.