Medical equipment company owner pleads guilty to $20M fraud

The owner of two durable medical equipment companies pleaded guilty to conspiracy for his role in a kickback scheme that resulted in more than $20 million in fraudulent claims submitted to Medicare. 

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Simon Orobor, 60, of Houston, owned Devotion Medical Supply and Durable Medical Supply from June 2016 and February 2019, according to a Nov. 16 Justice Department news release. Through an entity called Digital Interventions, Mr. Orobor obtained access to thousands of Medicare beneficiaries by paying kickbacks to an unnamed person and company on a weekly basis in exchange for signed physician’s orders for braces. The kickbacks were disguised as marketing expenses. 

Medicare paid more than $11.4 million of the more than $20.5 million in fraudulent claims that were submitted as part of the scheme, according to the release. Mr. Orobor will be sentenced Feb. 15. 

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