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pennsylvania man Charged With health care fraud

September 28, 2012


PHILADELPHIA – Brian Racey, 42, of North Wales, PA, a former territory manager for Orthofix, Inc., was charged today by information with health care fraud in connection with a scheme to submit $250,000 in fraudulent claims for bone stimulators that did not meet Medicare’s guidelines, announced United States Attorney Zane David Memeger. Orthofix, Inc., is a company that manufactures and distributes bone growth stimulator medical devices. Racey was a territory manager for Orthofix in Pennsylvania, New Jersey and Delaware from April 2004 until he resigned on March 31, 2011.

According to the information, the device that Racey sold was intended to assist patients with bone fractures that did not heal properly. Medicare has specific guidelines describing when it will pay for this device. The information alleges that between 2004 and March 31, 2008, Racey received orders for Medicare patients that did not meet these guidelines. According to the information, when this happened, Racey forged the patients’ medical records and altered doctors’ prescriptions to make it appear as though the orders met Medicare’s guidelines, and then caused fraudulent claims to be submitted to Medicare to pay for the devices.

If convicted, Racey faces a maximum possible sentence of ten years imprisonment, a $250,000 fine, and a $100 special assessment, along with restitution and forfeiture.

The case was investigated by the United States Department of Health and Human Services Office of Inspector General (“HHS-OIG”) and the United States Food and Drug Administration (“FDA”), and is being prosecuted by Assistant United States Attorney Mary E. Crawley.

Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525


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