Florida Felon Sentenced to 96 Months for Multi-Million Dollar Healthcare Kickback Scheme

MIAMI – In a major blow to a multi-million dollar healthcare kickback scheme, a Florida man has been sentenced to 96 months in federal prison for his role in the lucrative scam and for carrying out a COVID-19 fraud scheme and being a felon in possession of firearms.

Kareem Memon, 34, of Coral Springs, Florida, pleaded guilty to an information charging him with one count of conspiracy to commit healthcare fraud and one count of conspiracy to violate the federal Anti-Kickback Statute (Case No. 24-cr-60004) on February 8, 2024.

According to documents filed in the healthcare fraud case and statements made in court, Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for durable medical equipment (DME) for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries. Memon and his conspirators caused losses to Medicare in excess of $11 million.

On September 21, 2023, Memon pleaded guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal (Case No. 23-cr-80068). According to documents in the wire fraud case and statements made in court, Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. Moreover, at the time of Memon’s arrest he was a convicted felon and illegally possessed 12 firearms and ammunition.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Attorney for the United States Vikas Khanna for the District of New Jersey (for the healthcare fraud matter); Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; and Special Agent in Charge James E. Dennehy of the FBI, Newark Field Office, made the announcement.

The FBI West Palm Beach and Newark Field Offices investigated the cases, with invaluable assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); U.S. Department of Health and Human Services-Office of Inspector General; U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and U.S. Department of Veterans Affairs Office of Inspector General.

Assistant U.S. Attorneys Robin W. Waugh for the Southern District of Florida and Matthew Specht for the District of New Jersey prosecuted these cases. Assistant U.S. Attorney Mitchell Hyman for the Southern District of Florida is handling asset forfeiture.