A Florida man on Friday pleaded guilty to a $42 million fraud scheme involving false claims for durable medical equipment and cancer genetic testing, the Justice Department said.
Chad Monroe, 48, of Tarpon Springs, also pleaded guilty to fraudulently obtaining a Paycheck Protection Program loan. He admitted guilt to a single charge of wire fraud and another for health care fraud conspiracy.
Monroe and co-conspirators submitted fraudulent claims for knee, wrist, ankle and back braces, as well as cancer genetic testing that Medicare beneficiaries did not want or need, according to court documents. The group opened three companies to submit over $26 million in false claims to Medicare, Medicare Advantage plans and TRICARE, the department said. Monroe directed others to lie on Medicare enrollment documents to hide his role and ownership.
To generate doctors’ orders for the equipment and testing, Monroe paid purported telemedicine companies illegal kickbacks, the department said. Through his own company, Monroe then sold the doctors’ orders to co-conspirator laboratories, taking in upward of $15 million in illicit kickbacks. In addition, Monroe instructed an accomplice to submit a fraudulent PPP loan for over $30,000, using false statements about ownership to qualify.
Monroe used the proceeds to purchase a 47-foot yacht valued at over $600,000, a Cadillac Escalade and other luxury vehicles, the department said. Authorities confiscated the vessel along with more than $1 million related to the case.
A sentencing date has not been set. Monroe faces a maximum penalty of 10 years in prison for the health care fraud conspiracy and 30 years in prison for the wire fraud charge, the department said.