In a shocking verdict, a Texas jury has convicted the owner and office manager of DTS Medical Supply Company in Devine, TX, of participating in a massive $3.5 million healthcare fraud scheme. Daniel Thomason Smith, 55, and Kathleen Marina Kelly-Tuorila, 45, were found guilty of one count of conspiracy to commit healthcare fraud, one count of aiding and abetting healthcare fraud, eleven counts of aiding and abetting aggravated identity theft, and eight counts of aiding and abetting false statements related to a healthcare matter.
The scheme, which lasted from May 2006 to January 2010, involved submitting false and fraudulent benefit claims to Medicaid and Medicare for powered wheelchairs. Evidence presented during trial revealed that Smith employed a commission-based salesperson to recruit customers, while Kelly-Tuorila used the collected customer information to generate and submit fraudulent claims for reimbursement. Furthermore, it was discovered that the defendants used physicians’ names to support claims without their knowledge or consent.
According to court testimony, DTS Medical Supply Company would deliver less-expensive powered scooters to customers instead of the prescribed powered wheelchairs, resulting in a larger payment from Medicaid/Medicare and a larger percentage of profit for the company and Smith.
U.S. District Judge Alia Moses remanded Smith and Kelly-Tuorila into federal custody following the verdict. Both defendants face up to 10 years in prison for the conspiracy count, aiding and abetting healthcare fraud, and aggravated identity theft, as well as up to 5 years in prison for each false statement count.
The investigation was conducted by agents with the Federal Bureau of Investigation and investigators from the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorney Greg Surovic and Special Assistant United States Attorney Rex Beasley are prosecuting the case on behalf of the government.
The case highlights the importance of cracking down on healthcare fraud schemes that exploit vulnerable individuals and drain public resources. As the investigation continues, the public is urged to remain vigilant and report any suspicious activities to the authorities.
Smith and Kelly-Tuorila’s sentencing has yet to be scheduled, while a third defendant, Robin Renee Haigler, who pleaded guilty to the conspiracy charge in 2015, faces up to 10 years in prison pending sentencing in September.
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Key Facts
- State: Texas
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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