October 4, 2022

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Two Florida Guys Charged With $11 Million Medicare Fraud Scheme To Traffic In Prescriptions For Health-related Devices | USAO-SDNY

Damian Williams, the United States Lawyer for the Southern District of New York, and Scott J. Lampert, Unique Agent in Charge of the U.S. Division of Overall health and Human Companies Place of work of Inspector Standard (“HHS-OIG”) New York Regional Office announced now the arrest of ZACHARY S. SEID and ANTHONY CRACCHIOLO on charges of conspiracy, health and fitness care fraud, wire fraud, and unlawfully receiving kickbacks in link with Medicare. As alleged in an Indictment unsealed now in Manhattan federal court, SEID and CRACCHIOLO, ran companies committed to illegally getting and selling prescriptions for tough clinical devices (“DME”) these as leg, arm, and back again braces, and then employing those people prescriptions to file fraudulent Medicare claims for far more than $11 million, as well as marketing these kinds of prescriptions to other DME offer organizations, so that these businesses in transform could also file fraudulent Medicare claims. The situation has been assigned to U.S. District Judge John P. Cronan. SEID and CRACCHIOLO, who ended up arrested this early morning in Florida, will be introduced tomorrow in advance of magistrate judges in the Southern District of Florida. 

U.S. Lawyer Damian Williams said:  “Medicare is an invaluable taxpayer-funded plan devoted to giving affordable health treatment to beneficiaries in excess of 65 or with disabilities, not to enriching all those who would defraud the program by buying and promoting untrue prescriptions.”

HHS-OIG Unique Agent in Charge Scott J. Lampert mentioned:  “These allegations describe a greed-fueled scheme that undermined our health treatment method and the people today it serves. This sort of cons threaten affected person overall health, waste taxpayer money, and travel up healthcare expenditures for all of us.  Working carefully with our law enforcement companions, we will go on to aggressively root out health care fraud and convey criminals to justice.”

As alleged in the Indictment:[1]

From at minimum July 2019 via at least Oct 2020, SEID and CRACCHIOLO engaged in a scheme to defraud Medicare in at minimum three approaches.  Very first, SEID and CRACCHIOLO illegally compensated kickbacks of extra than $565,000 to order fraudulent DME prescriptions, such as prescriptions “signed” by medical doctors who in no way in fact signed or approved these prescriptions and have been unaware that their names and identities were being remaining so employed.  These DME prescriptions were for these kinds of equipment as braces for ankles, knees, elbows, wrists, and backs.  Next, SEID and CRACCHIOLO unlawfully obtained additional than $425,000 in kickbacks, reselling some of these prescriptions to DME suppliers, so that those people suppliers in change could fraudulently bill Medicare for the DME.  Last but not least, in about Could and June 2020, SEID and CRACCHIOLO acquired 5 of their individual fraudulent DME supply firms, and utilized the bogus prescriptions to file far more than $11 million in fraudulent Medicare statements, looking for payment to the DME suppliers that SEID and CRACCHIOLO managed.

Together, SEID and CRACCHIOLO offered to multiple DME source companies, and founded handle in excess of at minimum five DME supply businesses of their have, which they utilised to post their fraudulent Medicare claims. Those organizations have been: 1 Health-related Supplies Corp., Ameri Med Materials Corp., Just one Health care Wellness Supplies Corp., Sunshine Med Equip Corp., and Sunrise Med Support Team Corp.  In addition, Seid owned a firm named Seid Services, Inc., though Cracchiolo owned a firm referred to as Dataco.

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SEID, 35, of Boynton Beach, Florida, and CRACCHIOLO, 42, of Parkland, Florida, are just about every billed in four counts with conspiracy to commit health care fraud and wire fraud, health and fitness treatment fraud, wire fraud, and receiving kickbacks in violation of the Anti-Kickback Statute.  The conspiracy and wire fraud counts every have a highest likely jail sentence of 20 a long time the health and fitness treatment fraud depend carries a most probable jail sentence of 10 decades and the depend charging violation of the Anti-Kickback statute carries a highest possible prison sentence of five several years. The greatest possible penalties are prescribed by Congress and are delivered in this article for informational purposes only, as any sentencing of the defendant will be established by the choose.

Mr. Williams praised the investigative function of HHS-OIG.

This case is staying handled by the Office’s Elaborate Frauds and Cybercrime Device. Assistant United States Legal professional David Raymond Lewis is in charge of the prosecution.

The allegations contained in the Indictment are basically accusations, and the defendants are presumed innocent until and right until proven guilty.


[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment established forth beneath represent only allegations, and every single actuality described need to be taken care of as an allegation.