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Multi-Million Dollar Health Care Scam Exposed
A Kansas man has been brought to justice after pleading guilty to operating an internet-based platform that generated false doctors’ orders to defraud Medicare and other federal health care benefit programs of more than $1 billion.
Gregory Schreck, 50, of Johnson County, admitted to operating DMERx, an internet-based platform that generated false and fraudulent doctors’ orders for orthotic braces, pain creams, and other items for Medicare beneficiaries. Schreck, a vice president of the company that operated DMERx, offered to connect pharmacies, durable medical equipment (DME) suppliers, and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors’ orders that were transmitted using the DMERx platform.
Schreck and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries to provide their personally identifiable information and agree to accept medically unnecessary orthotic braces, pain creams, and other items through misleading mailers, television advertisements, and calls from offshore call centers.
As a result of this scheme, Medicare and the insurers paid more than $360 million based on these false and fraudulent claims. Schreck faces a maximum penalty of 10 years in prison and will be sentenced at a later date.
The case is a prime example of the Health Care Fraud Strike Force Program’s efforts to combat health care fraud. Since March 2007, this program has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion.
Gregory Schreck, Vice President of Health Care Software and Services Company, Pleaded Guilty to $1B Health Care Fraud Conspiracy in Kansas on March 20, 2024. He was charged with conspiracy to commit health care fraud. He faces a maximum penalty of 10 years in prison. The exact date of sentencing has not been set yet. Medicare and the insurers paid more than $360 million based on these false and fraudulent claims, while the DME suppliers and pharmacies that paid illegal kickbacks in exchange for these doctors’ orders generated through DMERx billed Medicare and other insurers more than $1 billion.
Key Facts
- State: Kansas
- Category: Health Care Fraud
- Source: DOJ Press Release â†â€â€
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