Florida medical supply company to pay $600K in Medicare fraud settlement

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Owners of an Orlando-based medical supply company have agreed to pay $600,000 to resolve allegations they participated in a scheme to defraud Medicare. 

Alan and Joan Harley of Central Medical Systems were named in a civil whistleblower lawsuit alongside Arthur Wright of Meddex Solutions.  The U.S. joined that lawsuit on Jan. 18, 2018. Prosecutors alleged the defendants conspired to make false claims in violation of the False Claims Act.

From 2011 through 2015, Mr. Harley submitted more than $870,000 in fraudulent claims to Medicare, despite his employees providing accurate data, prosecutors said. 

The United States previously entered into a civil settlement agreement with Mr. Wright and Meddex Solutions, effective June 1, 2021, under which they agreed to pay $77,741 to resolve the False Claims Act allegations.

Mr. Harley was also sentenced to 15 months in federal prison March 26, 2021 for wire fraud.

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