Daniel Thomason Smith, Medicare Fraud, Texas 2010

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Table of Contents

Guilty Verdicts Handed Down in Waco Medicare Scam

A jury in Waco, Texas, has convicted two individuals, Daniel Thomason Smith and Kathleen Marina Kelly-Tuorila, in connection with a $3.5 million Medicare scam. Smith, the 55-year-old owner of DTS Medical Supply Company, and Kelly-Tuorila, the 45-year-old office manager, were found guilty of conspiracy to commit health care fraud, aiding and abetting health care fraud, and other related charges.

The scheme, which spanned from May 2006 to January 2010, involved the submission of false and fraudulent benefit claims to Medicaid and Medicare for powered wheelchairs. Smith employed a third defendant, Robin Renee Haigler, on a commission basis to recruit customers, while Kelly-Tuorila generated and submitted the fraudulent claims for reimbursement.

Evidence presented during the trial revealed that the defendants used the names of physicians to support claims for reimbursement, even though the physicians had not prescribed the powered wheelchairs and, in some cases, did not know the customers. The defendants also delivered less-expensive powered scooters to customers, resulting in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith.

DTS Medical Supply Company, based in Devine, Texas, billed for powered wheelchairs but delivered less-expensive powered scooters to customers, resulting in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith.

U.S. District Judge Alia Moses remanded Smith and Kelly-Tuorila into federal custody following the reading of the verdict. Both defendants face up to ten years imprisonment on the conspiracy count, up to ten years imprisonment on the aiding and abetting health care fraud count, and other related charges. Sentencing for Smith and Kelly-Tuorila has yet to be scheduled.

The investigation was conducted by the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorney Greg Surovic and Special Assistant United States Attorney Rex Beasley are prosecuting this case on behalf of the government. Haigler, who pleaded guilty to the conspiracy charge on August 17, 2015, remains on bond pending sentencing in September and faces up to ten years in federal prison.