A Spokane Valley medical supply company owner has agreed to pay over $220,000 to resolve allegations of his involvement in a kickback scheme to bill Medicare for unnecessary medical equipment.
Why it matters: Durable medical equipment businesses that participate in illegal kickback schemes undermine public trust and jeopardize the integrity of the Medicare program.
The details:
- Justin Leland, CEO of U.S. Professional Medical Supply LLC, submitted around 400 billing claims to Medicare for durable medical equipment that patients did not need.
- The orders were placed by doctors who solicited and received kickbacks in return.
- Patients were contacted by telemarketers and received the equipment despite not needing it, without ever meeting face-to-face with a provider.
- Medicare paid $112,310 for these fraudulent claims.
In an unrelated case, an Ohio doctor, Thomas Andrew Webster, was sentenced to two years in federal custody for conspiring to accept kickbacks in a telemarketing scheme that targeted Eastern Washington patients.
The scheme:
- Dr. Webster conspired with an unnamed company to fabricate medical records and treatments for Eastern Washington patients.
- He ordered durable medical equipment, which was dispersed to other companies that fraudulently billed Medicare and TRICARE for over $14.6 million.
- Webster and the unnamed company billed the insurance firms for doctor visits and exams that never occurred, including claiming to have performed an exam and ordered equipment for a patient’s previously amputated limb.
- Dr. Webster admitted to directly receiving at least $839,566 from these fraudulent doctor visits.
What they’re saying:
- “Durable medical equipment businesses that participate in illegal kickback schemes to boost their profits undermine the public’s trust and jeopardize the integrity of the Medicare program,” said Steven Ryan, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General.
- “By placing his personal financial benefit ahead of his duty to patients, Dr. Webster violated the oath he took as a doctor and caused more than $14.6 million to be lost from critical health care programs designed for elderly and disabled Americans, as well as for military servicemembers and their families,” U.S. Attorney Vanessa Waldref said.
The consequences: Dr. Webster has been sentenced to pay restitution of $839,566 and a fine of $50,000, in addition to his prison sentence and supervised release.
Full story
Justin Leland, the owner of U.S. Professional Medical Supply LLC in Spokane Valley, has agreed to pay $224,620 to resolve allegations that he billed Medicare for unnecessary medical equipment. According to court documents, Leland’s company submitted approximately 400 billing claims to Medicare in September 2019 for durable medical equipment ordered by doctors who allegedly received kickbacks. Medicare paid out $112,310 for these claims.
Investigators found that patients were contacted by telemarketers and provided brief statements, but never actually saw a provider. They received equipment they did not need. U.S. Attorney Vanessa Waldref stated, “This settlement puts durable medical equipment suppliers on notice that they will be held accountable if they attempt to defraud the United States.
These schemes compromise patient care and result in payment for services that are not medically necessary.”
In an unrelated case, Dr. Thomas Andrew Webster, age 51, of Sylvania, Ohio, has pleaded guilty to conspiring to accept kickbacks in a fraudulent telemarketing and medical supply scheme that impacted Washington and other states. From May 2021 to September 2023, while residing in Olympia, Washington, Dr.
Webster engaged in a scheme with a company referred to as “Company A.”
Company A used telemarketers to collect personal and health information from beneficiaries in Eastern Washington and beyond. This data was used to fabricate medical records and fraudulent orders for durable medical equipment, which Dr. Webster signed off on, despite the services and treatments never occurring.
Spokane supplier’s Medicare fraud consequences
The fraudulent orders were then sold to other companies, which used them to falsely bill Medicare and TRICARE. The scheme resulted in Medicare and TRICARE paying more than $14.6 million for equipment ordered for over ten thousand beneficiaries.
Some beneficiaries were billed for equipment despite having amputated limbs. Dr. Webster admitted to receiving at least $839,565 from fraudulent billings. U.S. District Judge Mary K.
Dimke sentenced Dr. Webster to 24 months in federal custody, followed by three years of supervised release. He was also ordered to pay restitution of $839,566.44 and fined $50,000.
U.S. Attorney Waldref stated, “By placing his personal financial benefit ahead of his duty to patients, Dr. Webster violated the oath he took as a doctor and caused more than $14.6 million dollars to be lost from critical health care programs.”
The cases were investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service. Assistant United States Attorneys Dan Fruchter and Brian M.
Donovan prosecuted the cases.
- KXLY.”Washington man reaches over $200k settlement for Medicare fraud”.
- YourSourceOne.”Doctor who defrauded local residents and others throughout E. WA sentenced”.
- Spokesman.”Spokane Valley medical supply company to pay over $220,000 to resolve alleged involvement in kick-back scheme”.