Print

[Krik]

https://www.justice.gov/opa/pr/man-charged-148m-medicare-and-medicaid-fraud-scheme

[*quote*]


https://www.justice.gov/d9/2022-09/doj-logo-opa.svg

An official website of the United States government
Department of Justice
Office Of Public Affairs

Press Release
Man Charged in $148M Medicare and Medicaid Fraud Scheme
Thursday, November 30, 2023
For Immediate Release

Office of Public Affairs

A federal grand jury in Baton Rouge, Louisiana, returned an indictment today charging a Louisiana man for his role in a scheme to defraud Medicare and Medicaid of over $148 million in medically unnecessary definitive urine drug testing services.   

According to court documents, Brad Paul Schaeffer, 48, of Zachary, was a co-owner and chief executive officer of MedComp Sciences LLC (MedComp), a diagnostic laboratory located in Zachary. From approximately January 2013 through approximately August 2022, MedComp, at the direction of Schaeffer, allegedly billed Medicare and Medicaid for definitive testing of at least 15 substances in urine specimens it received, regardless of the patient’s treatment plan and history, or the request of the referring provider. To perpetuate the fraud, Schaeffer, through MedComp, allegedly took several actions, among them, writing off patient co-pays, directing MedComp staff to fill out and submit order forms on providers’ “behalf,” concealing the true nature, permissibility, and extent of testing from providers, orchestrating a pass-through billing scheme using hospitals, and paying kickbacks to physicians disguised as laboratory ownership interests. Schaeffer then allegedly used the fraudulent proceeds for his own benefit, including spending thousands of dollars to renovate a pool and on a pool house in his backyard, and to restore a truck. 

Schaeffer is charged with one count of conspiracy to commit health care fraud, five counts of health care fraud, and three counts of engaging in unlawful monetary transactions. If convicted, he faces a maximum penalty of 10 years in prison on each count.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana, Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Special Agent in Charge Douglas A. Williams Jr. of the FBI New Orleans Field Office, and Louisiana Attorney General Jeff Landry made the announcement.

HHS-OIG, the FBI, and the Louisiana Medicaid Fraud Control Unit are investigating the case.

Trial Attorneys Kelly Z. Walters and Samantha E. Usher of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White for the Middle District of Louisiana are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Updated November 30, 2023


Topic
Health Care Fraud
Components
Criminal Division
Criminal - Criminal Fraud Section
Federal Bureau of Investigation (FBI)
USAO - Louisiana, Middle
Press Release Number: 23-1351
Related Content
Speech
Acting Assistant Attorney General Nicole M. Argentieri Delivers Keynote Address at the 40th International Conference on the Foreign Corrupt Practices Act
Washington

Thank you so much for having me here today. This event brings together the foremost experts on the Foreign Corrupt Practices Act (FCPA). We have in this room federal prosecutors, U.S...
November 29, 2023
Press Release
Pharmacy Owners and Doctor Convicted for $145M Health Care Fraud, Money Laundering, and Tax Evasion Scheme

A federal jury convicted three Texas men yesterday for a $145 million scheme to defraud the Department of Labor through the submission of fraudulent claims for prescription compound creams.
November 17, 2023
Press Release
Chief Compliance Officer Sentenced for $50M Medicare Fraud Scheme

A Florida man was sentenced today to four years and six months in prison and ordered to pay $21.7 million in restitution for his role in a health care fraud...
November 16, 2023

    Office of Public Affairs
    U.S. Department of Justice
    950 Pennsylvania Avenue, NW
    Washington DC 20530

    Office of Public Affairs Direct Line
    202-514-2007

    Department of Justice Main Switchboard
    202-514-2000

    Signup for Email Updates

    Social Media
https://twitter.com/FBI

U.S. Department of Justice logo

    Contact USA.gov
[*/quote*]