Federal Grand Jury Indicts Owner of Local Durable Medical Equipment Company on Health Care Fraud Charges
DALLAS — Philip Odoemena, 59, the owner/operator/administrator of Kingsway Medical Systems, Inc., has been charged in a federal indictment with felony offenses related to a scheme to defraud Medicare and Medicaid, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Odoemena appeared Friday afternoon before U.S. Magistrate Judge Irma C. Ramirez, who ordered him detained pending trial.
Specifically, the indictment charges Odoemena, of Allen, Texas, with seven counts of health care fraud in connection with his alleged scheme to defraud the Medicare and Medicaid health care benefit programs from May 2007 until March 2012. Odoemena allegedly defrauded the programs and enriched himself by submitting and causing the payment of fraudulent claims for reimbursement that falsely represented that legitimate supplies were provided to beneficiaries and that falsely represented the supplies were medically necessary.
Kingsway Medical Systems, Inc. was located in Richardson, Texas. Among other things, Kingsway billed for enteral nutrition (tube feeding) supplies, enteral feeding supply kits, wheelchairs, and accessories.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each of the health care fraud counts carries a maximum statutory sentence of 10 years in prison and a $250,000 fine. The indictment also includes a forfeiture allegation that would require Odoemena, if convicted, to forfeit proceeds traceable to his offenses.
The case is being investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. To learn more health care fraud, please visit: http://stopmedicarefraud.gov.
The case is being prosecuted by Special Assistant U.S. Attorney Brian W. Portugal and Assistant U.S. Attorney Katherine E. Pfeifle.
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