Florida Fraudster Memon Gets 8 Years for $11M Medicare Scam

NEWARK, N.J. – Kareem Memon, 34, of Coral Springs, Florida, is headed to federal prison for nearly eight years after being convicted of orchestrating a brazen, multi-million dollar health care kickback scheme. The sentence, handed down May 29, 2024, by U.S. District Court Judge Raag Singhal in the Southern District of Florida, reflects the scope of Memon’s greed and disregard for the Medicare system.

Memon pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute. But the Medicare fraud wasn’t his only crime. The feds say Memon and his crew ran marketing call centers and telemedicine operations designed to generate bogus doctor’s orders for durable medical equipment (DME) – braces, specifically – for Medicare recipients who didn’t need them. They pocketed over $11 million in fraudulent payments by accepting bribes from DME companies eager to cash in on the scheme.

This wasn’t a victimless crime. The $11 million in losses represents stolen funds from a system designed to provide healthcare for the elderly and disabled. Prosecutors detailed how Memon’s operation functioned solely on lining his pockets, ignoring any legitimate medical need. The scheme involved providing doctors’ orders in exchange for kickbacks – a classic, cynical manipulation of the healthcare system.

The sentencing comes on top of a separate guilty plea Memon entered last September, admitting to wire fraud, money laundering, and being a felon in possession of firearms. He’d fraudulently applied for over $451,000 in COVID-19 relief loans – Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans – under the CARES Act, then used the money for personal expenses. Adding insult to injury, authorities discovered Memon was unlawfully in possession of a staggering arsenal of 12 firearms and ammunition at the time of his arrest.

“This case demonstrates a callous disregard for the law and a willingness to exploit a vital healthcare system for personal gain,” said Attorney for the United States Vikas Khanna of the District of New Jersey, and U.S. Attorney Markenzy Lapointe of the Southern District of Florida, in a joint statement. Judge Singhal didn’t just impose the 96-month prison sentence, but also tacked on three years of supervised release after Memon serves his time.

The investigation was a collaborative effort spearheaded by the FBI, the Department of Health and Human Services-Office of Inspector General, the Department of Defense Office of the Inspector General, and the Department of Veterans Affairs Office of Inspector General. Assistant U.S. Attorneys Matthew Specht and Robin Waugh are handling the prosecution, with Mitchell Hyman focused on asset forfeiture – meaning the government intends to seize any ill-gotten gains Memon accumulated through his criminal enterprises.