Christopher Spellman, Health Care Fraud, New Hampshire 2024

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Table of Contents

Florida Man Pleads Guilty to Medicare Fraud, Concord NH, 2024

A Florida man has pleaded guilty to his role in a Medicare scam that netted $39.5 million in false claims, according to a federal indictment unsealed in New Hampshire.

Christopher Spellman, 22, of Port Richey, Florida, pleaded guilty to one count of conspiracy to commit health care fraud in federal court in Concord.

According to court documents, Spellman and his co-conspirators owned and operated Dimon Business Solution, LLC, a durable medical equipment management company. However, they concealed their ownership interests in the company by using nominee owners.

Spellman and his co-conspirators paid kickbacks and bribes for signed doctors’ orders prescribing orthotic braces. Ultimately, Medicare beneficiaries received orthotic braces that were medically unnecessary, procured through illegal kickbacks and bribes, and not often wanted or needed.

During the conspiracy, Spellman and his co-conspirators submitted, or caused the submission of, false and fraudulent claims to Medicare in excess of $39.5 million for orthotic braces that were medically unnecessary, ineligible for Medicare reimbursement, or not provided as represented. Medicare paid at least $23 million to DME suppliers secretly owned and operated by Spellman and his co-conspirators for these claims.

The charging statute provides a sentence of no greater than 10 years in prison, 3 years of supervised release, and a fine of $250,000 or twice the pecuniary gain. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

The Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, Internal Revenue Service, and the U.S. Department of Defense’s Defense Criminal Investigative Service led the investigation. First Assistant U.S. Attorney Jay McCormack and Assistant U.S. Attorney Geoffrey Ward are prosecuting the case.