US Jails 2 Men Sentenced to Prison Over $34M Fraud Scheme
- Kenneth Kessler and Michael Gomez owned seven DME companies they used to bill Medicare for braces patients never needed or requested
- The pair paid kickbacks for fraudulent doctors' orders and rotated billing across multiple companies to evade Medicare payment suspensions
- Kessler personally profited over $1.4 million while Gomez walked away with more than $2.3 million before their May 2026 guilty pleas
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Two Florida men have been sentenced to federal prison for their roles in a $34.8 million Medicare fraud conspiracy centred on orthotic braces that beneficiaries never requested or needed.
Kenneth Charles Kessler III, 43, of Miami, and Michael Andrew Gomez, 43, of Miramar, were sentenced following their May 2026 guilty pleas to one count each of conspiracy to commit health care fraud.
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Kessler received a 33-month prison sentence, while Gomez was sentenced to 24 months.
How the $34.8M fraud scheme worked
According to court documents, Kessler and Gomez owned and operated seven durable medical equipment (DME) supply companies based in Florida. Through these businesses, the pair submitted millions of dollars in false claims to Medicare for orthotic braces that were medically unnecessary.
To obtain the orders needed to process those claims, they paid illegal kickbacks and bribes in exchange for fraudulent doctors' signatures. The braces were then shipped to Medicare beneficiaries across the United States, including individuals who had never asked for them and had no clinical need for them. When Medicare moved to suspend payments to one of their companies, Kessler and Gomez simply shifted the fraudulent billing to another entity within their network, cycling through their seven businesses to keep the scheme running.
By the time investigators unravelled the operation, Kessler had personally profited more than $1.4 million and Gomez more than $2.3 million.
DOJ and FBI lead prosecution
The case was investigated by the FBI's Miami Field Office and the US Department of Health and Human Services Office of Inspector General. Trial Attorneys Aisha Schafer Hylton and Owen Dunn of the National Fraud Enforcement Division's Health Care Fraud Section handled the prosecution.
Assistant Attorney General Colin M. McDonald said the sentences sent a direct message to those who exploit federal health programmes.
"They paid kickbacks for fake doctors' orders, shuffled billing among several companies to dodge payment suspensions, and pocketed millions that belonged to American taxpayers. Their prison sentences make clear: if you steal from Medicare, you will be caught, you will be prosecuted, and you will be held accountable," McDonald said.
US Attorney Jason A. Reding Quiñones for the Southern District of Florida added that the defendants "built a $34.8 million scheme around medically unnecessary braces, fraudulent doctors' orders, and illegal kickbacks, all to enrich themselves at the expense of American taxpayers."
The Department of Justice's Health Care Fraud Strike Force Programme, which operates across nine federal districts, has charged more than 6,200 defendants since 2007 for collectively billing federal health care programmes and private insurers more than $45 billion.
FBI offers $150k reward for fugitive
Earlier, YEN.com.gh reported that the FBI had placed Bernhard Eugen Fritsch, 65, on its newly created Most Wanted Fraudsters list.
The agency is offering a reward of up to $150,000 for information leading to his capture after he fled the United States following a jury conviction for defrauding investors of more than $20 million.
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Source: YEN.com.gh
