Brothers Convicted in $6M Ambulance Fraud Scam

HOUSTON – The grimy details of a $6 million health care fraud conspiracy have come to light as brothers Kevin Olufemi Davies, 29, and Melvin Olusola Davies, 28, were convicted on charges of conspiracy to commit health care fraud, health care fraud, and money laundering.

The duo, who ran KMD Healthcare Services Inc. (KMD) from their plush home in a gated community, admitted to using stand-ins as emergency medical technicians (EMTs) to pass state inspections required for Medicare enrollment. They bilked the system by transporting Medicare beneficiaries in private vans without the required EMT staffing.

One patient, able to walk and use non-ambulance transport, was billed $51,952 for a fictitious ambulance ride. The brothers also paid a Houston physician $500 per medical necessity order to bill Medicare. KMD’s fraudulent claims totaled approximately $6,293,108, with the brothers receiving over $2.2 million from Medicare alone.

They have agreed to forfeit luxurious vehicles purchased with the fraud proceeds, including a 2010 Porsche Panamera and a 2012 Mercedes Benz CLS, and will pay full restitution to the affected health care programs. Sentencing is set for March 13, 2017, where each brother faces up to 10 years in federal prison and a fine of $250,000.

The investigation was conducted by the FBI, IRS – Criminal Investigation, and Texas Office of the Attorney General’s Medicaid Fraud Control Unit, with Assistant U.S. Attorney Julie Redlinger leading the prosecution.