Grimy Times has learned that the owner of a Houston health care company, Philip Ware, was convicted yesterday by a jury in the Southern District of Texas in connection with a $750,000 Medicare fraud scheme.
The evidence presented at trial showed that Ware was an owner and operator of Preferred Plus Medical Supply. Preferred Plus maintained a valid Medicare provider number in order to submit Medicare claims for the costs of durable medical equipment (DME) and purported to provide orthotics and other DME to Medicare beneficiaries.
However, the claims submitted by Preferred Plus were for DME, including orthotic devices, which were medically unnecessary and/or not provided. Many of the orthotic devices were components of “arthritis kits” and purported to be for the treatment of arthritis-related conditions; however, the devices were neither medically necessary nor appropriate for such conditions.
The arthritis kit generally contained a number of orthotic devices including braces for both sides of the body and related accessories such as heat pads. In total, from August 2008 through July 2009, Preferred Plus submitted approximately $750,000 in fraudulent claims to Medicare.
Philip Ware, 31, of Houston, was convicted of one count of conspiracy to commit health care fraud and four counts of substantive health care fraud. His sentencing is scheduled for September 24, 2012, where he faces a maximum sentence of 50 years in prison.
This case was prosecuted by Trial Attorneys David Maria, Ben O’Neil and Laura M.K. Cordova of the Fraud Section in the Justice Department’s Criminal Division. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine districts have obtained indictments of more than 1,330 individuals who collectively have falsely billed the Medicare program for more than $4 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
This case highlights the ongoing problem of Medicare fraud in the United States. As the Medicare program continues to grow, so does the potential for fraud. It is essential that law enforcement agencies and regulatory bodies work together to prevent and prosecute these crimes.
Defendant: Philip Ware
Criminal Charges: Conspiracy to commit health care fraud and four counts of substantive health care fraud
City and State: Houston, Texas
Date: August 2008 through July 2009
Sentence: Maximum 50 years in prison
Dollar Amount: $750,000
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- Kenneth Ray Shackelford, Red River Army Depot Fraud, Texas 2007 · Kansas
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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