A major healthcare fraud case involving Medicare has come to light, centered around a telemedicine company that misused the system for years. The owner of the company, Christopher Harwood, admitted to running a large fraud scheme that lasted more than six years and involved millions of dollars in false Medicare claims.
According to official court documents, the company used aggressive telemarketing to reach out to Medicare patients. These patients were often elderly and trusted the calls they received. They were convinced to accept medical products and tests that they did not actually need.
The products included orthotic braces, such as back and knee supports, and genetic testing services. Many patients agreed without fully understanding the situation or believing it was necessary for their health.
The scheme resulted in a total of $46.2 million in false claims being submitted to Medicare. Out of this amount, Medicare paid $17.9 million, leading to a significant financial loss for the government healthcare program.
Fake Approvals and Illegal Billing Practices
The fraud did not stop at targeting patients. The company also involved doctors in the process. Payments were made to certain doctors to approve medical orders for braces and genetic tests.
Robert Bobby Leon Smith III sentenced to over 12 years for $61 million Medicare fraud scheme
These approvals were not done properly. In many cases, doctors did not follow the rules required for telemedicine visits. They did not have real relationships with the patients and often signed medical orders without meaningful interaction.
This means that patients were being approved for treatments without proper medical checks. These actions go against strict Medicare rules designed to protect patients and ensure fair use of healthcare services.
Once the approvals were signed, the company sold these orders to other businesses. These included medical equipment suppliers, laboratories, and marketers who were part of the wider scheme.
In addition, multiple medical equipment supply companies were used to bill Medicare directly. These companies charged for braces that patients either did not want or did not need. This step helped move large amounts of money through the system without raising immediate suspicion.
Through this process, millions of dollars were collected illegally. Christopher Harwood personally received more than $10.4 million from these activities.
Investigation, Charges, and Legal Action
The case was investigated by federal authorities, including Federal Bureau of Investigation and Office of Inspector General (HHS). The announcement was made by officials including A. Tysen Duva, Scott J. Lampert, and Brett Skiles.
Medical device leader Balt SAS agrees to pay 1.2 million dollars following DOJ probe
Their investigation uncovered the full scale of the fraud and the methods used to carry it out.
Christopher Harwood has now pleaded guilty to serious charges. These include conspiracy to commit healthcare fraud and wire fraud. The case is being prosecuted by Trial Attorney Owen Dunn.
As part of the legal process, there is an agreement to repay the $17.9 million that Medicare had paid based on the false claims.
The case will move forward to sentencing at a later date. The maximum possible sentence for these charges is 20 years in prison. A federal judge will decide the final punishment after reviewing legal guidelines and other important factors.
This case is part of a larger effort to fight healthcare fraud across the country. A special program focused on healthcare fraud has been active since 2007. It has charged more than 6,200 defendants who together have billed over $45 billion in false claims to federal healthcare programs and private insurers.
Authorities continue to monitor and take action against such schemes. They are also working with healthcare agencies to hold providers accountable and protect patients from being misled or exploited.
The case highlights how important it is to follow medical rules and protect public healthcare systems. It also shows how fraud can impact both patients and government resources when systems are misused over long periods of time.