Settlement of Qui Tam Case Filed for Durable Medical Equipment (DME) Fraud
We represent the Relator in the most significant qui tam case to be filed and resolved under "Operation Brace Yourself", a nationwide criminal conspiracy to defraud Medicare through sales of worthless and medically unnecessary medical devices such as back, wrist, ankle, and knee braces. These products were heavily marketed on social media, "prescribed" by telehealth doctors, and "fulfilled" by sham DME companies. We filed our client's case in early 2019, and in April 2019, the U.S. Department of Justice, FBI, and other federal agencies raided dozens of sites around the country and initially arrested 24 people.
Since then, more than 300 persons have now been charged, and dozens have pleaded guilty and been sent to prison. The total amount of fraud estimated by the government in all the tentacles of the conspiracy is over $1.2 billion.
The case that we filed dealt with just one "faction" of the conspiracy, but that faction was responsible for nearly $200 million in losses. The government seized funds traced to the frauds identified in our complaint. In February 2021, the main defendant in our case agreed to the forfeiture of over $20 million, from which the Government agreed to pay our client a whistleblower reward of over $4.6 million, representing 23% of the seized monies.