A California man who owned two durable medical equipment companies pleaded guilty to his role in a $5.9 million Medicare fraud scheme.
What happened?
- Jacobo Melcer, 85, of Bonita, admitted to paying kickbacks to multiple companies for the referral of Medicare beneficiaries and prescriptions for durable medical equipment, according to a July 2 Justice Department news release.
- Mr. Melcer paid more than $277,000 in kickbacks and fraudulently billed Medicare nearly $5.9 million, of which he received nearly $3.5 million.
- He also admitted to creating and selling two durable medical equipment companies to a co-conspirator to conceal true ownership from Medicare after the co-conspirator was suspended and could no longer submit claims.
What’s next?
- He is scheduled to be sentenced on Oct. 10 on a charge of conspiracy to commit healthcare fraud and pay illegal remunerations. He faces up to five years in prison and a $500,000 fine.
- As part of his guilty plea, Mr. Melcer agreed to pay nearly $3.5 million in restitution.
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