Newark, N.J. – A brazen $51 million health care fraud scheme has been brought to justice, thanks to the guilty plea of a Mississippi man who defrauded Medicare out of millions.
Keaton Langston, 39, of Booneville, Mississippi, pleaded guilty to conspiracy to commit health care fraud before U.S. District Judge Michael E. Farbiarz in Newark federal court. The scheme, which involved durable medical equipment, genetic cancer screening tests, and compounded medications, caused losses to Medicare in excess of $51 million, Attorney for the United States Caroline Sadlowski announced.
According to documents filed in the case and statements made in court, Langston and others owned, operated, had financial interests in, or were affiliated with pharmacies, durable medical equipment (DME) companies, and a laboratory that Langston and others used to defraud health care benefit programs by offering and paying kickbacks and bribes in exchange for doctors’ orders.
The pharmacies, DME companies, and laboratory submitted or caused the submission to Medicare of claims for reimbursement without regard to medical necessity, and sent a portion of the proceeds to others as payment for the doctors’ orders generated through the conspiracy. Langston and others concealed the payment of bribes, in part, by entering into sham contracts designed to make it appear that suppliers were engaged in and being paid for legitimate marketing and referral services.
The pharmacies, DME companies, and laboratory billed Medicare and other health care benefit programs at approximately $51 million for tests and orders that were the product of the illicit scheme. Langston received approximately $10 million from these reimbursements.
The charge of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for October 1, 2024. The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.
Attorney for the United States Sadlowski credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the guilty plea.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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