Grimy Times

Jacob Kilgore, Medicare Fraud, Utah 2013

Published March 12, 2015

Grimy Times Exclusive

Former Medical Equipment Supplier Indicted for Medicare Fraud Scheme

Medical Equipment

Jacob Kilgore, 34, of Fruit Heights, Utah, has been indicted on three counts of health care fraud, three counts of false statements relating to health care matters, and three counts of wire fraud. Kilgore, a former co-owner, vice president, and regional sales manager of Orbit Medical Inc., allegedly directed a scheme to defraud Medicare by submitting false and fraudulent claims for power wheelchairs from approximately September 2008 through June 2011.

According to court documents, Kilgore and his accomplices falsified medical records, including power wheelchair prescriptions and chart notes obtained from physicians, to make it appear that beneficiaries qualified to receive power wheelchairs when they did not. The scheme allegedly resulted in more than $20 million in claims from Orbit to Medicare for power wheelchairs, of which Medicare paid more than $15 million.

Kilgore's accomplices, Morgan Workman, 35, of Farmington, Utah, David Evans, 29, of South Jordan, Utah, and Hunter Hartman, 29, of Ladera Ranch, Calif., have each pleaded guilty to conspiring to commit health care fraud. They are awaiting sentencing. Kilgore is scheduled to make an initial appearance on the charges on November 21, 2013, at 10:15 a.m. in U.S. Magistrate Judge Brooke Wells' courtroom.

The investigation into the Medicare fraud scheme was led by the FBI, HHS-OIG, and DCIS. The case is being prosecuted by Assistant U.S. Attorney Mark Y. Hirata of the U.S. Attorney's Office in Utah and DOJ Trial Attorney Niall M. O'Donnell of the Criminal Division's Fraud Section. Kilgore is presumed innocent until proven guilty.

As Grimy Times continues to expose the dirty underbelly of healthcare, it is clear that the Medicare system is vulnerable to exploitation. The $20 million Medicare fraud scheme orchestrated by Kilgore and his accomplices is a stark reminder of the need for increased oversight and accountability in the healthcare industry.

Stay tuned for further updates on this developing story.

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Source: https://www.justice.gov/usao-ut/pr/former-owner-salt-lake-city-medical-equipment-supply-company-indicted-and-three-company