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Fraudulent Misbranding of PPE Nets $22 Million Settlement

Company sold $9 million in mislabeled surgical gowns; medical device company to pay nearly $39 million for allegedly selling defective diagnostic devices; more

Massachusetts , United-states , Georgia , Philippines , Hong-kong , Alpharetta , Texas , American , Leah-hagen , Prerak-shah , Rahim-shafa , Nahid-tormosi-shafa

Texas Medical Equipment Company Owners Convicted of $27M Fraud

Texas Medical Equipment Company Owners Convicted of $27M Fraud
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Florida , United-states , Philippines , Dallas , Texas , New-jersey , Arlington , South-carolina , Leah-hagen , Miranda-bennett , Prerak-shah , Michael-hagen

Jury Convicts Medical Equipment Company Owners of Million Fraud

Published: 10 July 2021 10 July 2021
Dallas, Texas - A federal jury convicted Dallas area owners and operators of two durable medical equipment companies Thursday of one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and one count of conspiracy to commit money laundering.
According to the evidence presented at trial, Leah Hagen, 49, and Michael Hagen, 54, of Arlington, Texas, were owners and operators of two durable medical equipment (DME) companies: Metro DME Supply LLC (Metro) and Ortho Pain Solutions LLC (Ortho Pain), both operated out of the same location in Arlington. The defendants paid a fixed rate per DME item in exchange for prescriptions and paperwork completed by telemedicine doctors that were used to submit false claims to Medicare. The defendants paid illegal bribes and kickbacks and wired money to their co-conspirator’s call center in the Philippines that provided signed doctor’s orders for orthotic braces. The evidence at trial showed emails exchanged between Leah and Michael Hagen and their co-conspirators showing a per-product pricing structure for orthotic braces but disguising their agreement as one for marketing and other services.

Philippines , United-states , New-jersey , Arlington , Texas , South-carolina , Florida , Dallas , Miranda-bennett , Prerak-shah , Adrienne-frazior , Matthewj-desarno