Owner of medical supply company sentenced for $3.3M Medicare fraud scheme

The owner of a New Orleans-based medical device company was sentenced to six years in prison for defrauding Medicare of more than $3.3 million.

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On April 30, Tracy Richardson Brown — the owner and operator of Psalms 23 DME — was convicted of 18 counts of healthcare fraud, conspiracy and other related charges.

U.S. District Judge Stanwood R. Duval Jr. of the Eastern District of Louisiana sentenced Brown to 80 months in prison and ordered her to pay about $2 million in restitution.

Evidence presented during the five-day trial showed Ms. Brown paid patient recruiters for the names and billing information of Medicare beneficiaries in the New Orleans area. She then used this information to bill Medicare more than $3.3 million for a variety of devices, including power wheelchairs and knee, elbow and back braces.

Trial evidence proved that a vast majority of patients did not need, receive or even want the billed equipment.

Medicare paid about $2 million on the claims.

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