NEWARK, N.J. (AP) - A New Jersey firm, its owner and his brother will pay more than $12.2 million to resolve claims that they improperly used a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries.
Federal prosecutors announced the settlement with Milford-based U.S. Healthcare Supply on Wednesday.
The company will pay $5 million plus interest. Its owner and president, Jon Letko, will pay $1 million plus interest.
Letko’s brother, Edward, will pay $6 million plus interest. He owns and is president of Oxford Diabetic Supply, a medical equipment supplier allegedly involved in the scheme.
Prosecutors say the firms set up and controlled an entity called Diabetic Experts, which they used to make calls to suspected Medicare beneficiaries in order to sell them durable medical equipment.
Prosecutors say the firms improperly submitted claims to Medicare for the equipment.
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