US Sentences Top Businessman to 2 Years for $110 Million Fraud Scheme, FBI Shares Details
- Steven Richardson, 42, of Port St. Lucie, Florida, faced federal sentencing in Boston for his role in a large-scale telemedicine fraud operation
- Richardson's companies, Expansion Media and Hybrid Management Group, worked with telemarketers to generate fraudulent Medicare orders for durable medical equipment
- The scheme ran for nearly seven years and involved doctors signing prepopulated orders for patients they had never examined or contacted
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A businessman has been sentenced to two years in federal prison after pleading guilty to orchestrating a telemedicine fraud scheme that submitted approximately $110 million in false claims to Medicare.
Steven Richardson, 42, of Port St. Lucie, was sentenced by U.S. District Court Judge Nathaniel M. Gorton in Boston. His custodial term will be followed by two years of supervised release.
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Richardson pleaded guilty in April 2024 to one count of conspiracy to commit health care fraud, following charges filed against him in February of that year.
How the fraud scheme operated
Between March 2016 and January 2023, Richardson used his two companies, Expansion Media and Hybrid Management Group, to build relationships with telemarketing firms that targeted Medicare beneficiaries. Those telemarketers paid Richardson's companies on a per-order basis to generate referral orders for durable medical equipment (DME), primarily orthotics such as back and knee braces.
To fulfil those orders, Richardson worked with medical staffing companies, including one based in Massachusetts, to recruit doctors and nurses willing to review and sign prepopulated forms. In the vast majority of cases, these medical professionals had no direct contact with the beneficiaries whose names appeared on the forms.
The documentation was structured to give the false impression that a legitimate medical examination had taken place.
Richardson then passed the signed orders back to the telemarketing companies, which sold them on to DME suppliers. Those suppliers used the documentation to file Medicare claims for equipment that was medically unnecessary and obtained through false records and kickbacks.
Federal authorities make the announcement
United States Attorney Leah B. Foley announced the sentence alongside several senior law enforcement officials, including Roberto Coviello, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General, and Ted E. Docks, Special Agent in Charge of the FBI's Boston Division.
Representatives from the U.S. Postal Inspection Service, the Department of Labour's Employee Benefits Security Administration, and the Defence Criminal Investigative Service also participated in the case.
The prosecution was handled by Assistant U.S. Attorneys Alexandra Brazier and Lindsey Ross of the Affirmative Civil Enforcement Unit.
US Embassy Ghana announces two high-paying jobs
In a related development, YEN.com.gh reported that the US Embassy in Ghana was hiring for two communications roles.
The US Embassy announced vacancies for the positions of Press and Media Specialist and Press and Media Coordinator.
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Source: YEN.com.gh
