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Medical equipment companies to pay $12M for False Claims Act violations

Jaclyn Jaeger | September 8, 2016

U.S. Healthcare Supply and Oxford Diabetic Supply have agreed to pay the United States more than $12.2 million to resolve allegations that they violated the False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment. 

On Sept. 7, U.S. Healthcare Supply has agreed to pay more than $5 million, and Jon Letko, its owner and president, has agreed to pay more than $1 million. His brother, Edward Letko, the owner and president of Oxford Diabetic Supply, a medical equipment supplier that allegedly also participated in the scheme, has agreed to pay $6 million plus interest. 

“We will continue to hold health care providers accountable for attempting to circumvent Medicare statutes and regulations that help prevent the submission of claims for...

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