Related Federal Cases
Utah Man Sentenced to 60 Months for Medicare Fraud Scheme
SALT LAKE CITY, Utah – Jacob J. Kilgore, a former owner of a Salt Lake City durable medical equipment company, has been sentenced to 60 months in federal prison for his role in a Medicare fraud scheme involving power wheelchairs.
Kilgore, 36, of Fruit Heights, was the co-owner of and employed as the vice president, and later, president of Orbit Medical, a Utah- and Indiana-based national supplier of durable medical equipment that specialized in power wheelchairs. The company maintained three Utah offices in the Salt Lake City area.
Kilgore pleaded guilty to three counts of conspiracy to commit healthcare fraud. He was also ordered to pay $4 million in restitution over the next eight months, with the first installment of $1 million paid at his sentencing. A second $1 million payment is due by June 1, 2016, with a final payment of $2 million due by December 31, 2016. Kilgore must also forfeit $776,001, the amount of his personal gain from the criminal conduct.
Federal prosecutors said the fraud scheme was driven by money and was enforced by Kilgore through a monthly quota demanding each sales representative sell 10 power wheelchairs per month. The pressure to perform caused sales reps to alter physician charts to meet Medicare’s stringent medical necessity requirements.
Prosecutors said Kilgore used commissions to entice sales reps and encourage them to pursue more shortcuts, essentially ramping up the fraud and deception. Rather than facilitating mobility evaluations and obtaining proper chart notes, sales reps instead requested a signed prescription and any recent chart notes. Kilgore took full responsibility for his actions, prosecutors noted.
U.S. District Judge David Nuffer imposed the 60-month sentence for Kilgore. Kilgore will be on supervised release for 36 months following the completion of his federal prison sentence. The case was investigated by the agents of the FBI, the Defense Criminal Investigative Service, and the Health and Human Services Office of Inspector General.
Three company sales representatives were sentenced Thursday, two receiving prison terms, for their role in the fraud scheme. The case highlights the need for stricter oversight and enforcement in the healthcare industry to prevent similar schemes from occurring in the future.
Key Facts
- State: Utah
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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