Archer City, Texas resident Robert “Bobby” Leon Smith III, 50, was sentenced to 150 months in prison followed by two years of supervised release on Wednesday. Smith was convicted for orchestrating a $61.5 million health care and wire fraud conspiracy targeting Medicare beneficiaries. The scheme involved deceptive telemarketing and the unnecessary shipment of orthotic braces, foot baths, and genetic tests.
Court documents revealed Smith owned and operated seven durable medical equipment (DME) companies across Florida, Texas, and Maryland. These companies submitted fraudulent claims to Medicare for the unneeded medical supplies. Smith also controlled a Texas-based marketing company used to conduct the deceptive telemarketing campaigns.
The operation utilized an offshore call center in the Philippines to target Medicare recipients, falsely promoting the medical devices and tests. Thousands of beneficiaries received items they did not require, resulting in significant financial loss to Medicare. Evidence presented at trial detailed Smith’s leadership role in the conspiracy.
The investigation uncovered Smith’s systematic defrauding of the Medicare system through unnecessary medical equipment orders. He faces significant consequences for his role in the large-scale fraud.
Investigated by the FBI and the Department of Health and Human Services, Office of Inspector General.
Source: Department of Justice