A settlement reached to resolve False Claims Act Allegations against U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc and the two owners and presidents of those companies.
The allegations arose by a lawsuit claiming U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc and the two owners and presidents of those companies violated the federal False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment.
According to Department of Justice, U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc set up and controlled an entity called Diabetic Experts Inc, which they used to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment. The companies submitted claims to Medicare for the equipment that they sold based on these unsolicited calls.
“Cold-calling people to sell them expensive medical equipment is prohibited for a reason: unsuspecting patients shouldn’t be coerced into making medical decisions about devices and equipment – which they may not even need – on the basis of a sales pitch,” said U.S. Attorney Paul J. Fishman for the District of New Jersey.
U.S. Healthcare Supply LLC has agreed to pay more than $5 million, and Jon P. Letko, its owner and president, has agreed to pay more than $1 million. The owner and president of Oxford Diabetic Supply Inc, Edward J. Letko, has agreed to pay $6 million plus interest.
