Four Charged With Health Care Fraud And Related Crimes

Tampa, Florida – United States Attorney Gregory W. Kehoe announces the  unsealing of an indictment charging Edward Cannatelli (60, Parkland), Robbyn Cannatelli (68, Parkland), Thomas Farese (82, Fort Lauderdale), and Virginia Lockett (55, Margate) for their roles in a conspiracy to defraud the United States’ Medicare program, make false statements relating to health care matters, and offering and paying illegal kickbacks and bribes. They are also charged in a second conspiracy to commit wire and health care fraud, and with related substantive counts concerning the falsification of records in the federal investigation leading to the indictment. If convicted on all counts, Edward and Robbyn Cannatelli and Farese each face a maximum penalty of 65 years in federal prison. Lockett faces a maximum penalty of 85 years in federal prison. The indictment also notifies the defendants that the United States intends to forfeit any property, real or personal, which constitutes or is derived from proceeds traceable to the commission of the offenses.

According to court documents, beginning in June 2019 and continuing into at least June 2020, Edward and Robbyn Cannatelli, Farese, and Lockett, and other conspirators, including Patsy Truglia (56, Parkland) and LouTricia Morgan (49, Sunrise) generated medically unnecessary physicians’ orders via a telemarketing operation for certain orthotic devices—knee braces, back braces, wrist braces, and other braces—referred to as durable medical equipment (DME). Through the telemarketing operation, federal health care program beneficiaries’ (i.e., Medicare beneficiaries) personal identifying information—names, dates of birth, and Medicare ID numbers—and other health-related information was harvested to begin forming DME brace orders.  

The information related to the emerging brace orders was then transmitted to purported “telemedicine” vendors that, in exchange for a fee, paid illegal kickbacks and bribes to physicians who signed the orders, often without ever contacting the beneficiaries to conduct the required telehealth consultations. The fraudulent, illegal brace orders were then returned to the conspirators, who used the orders as support for bogus DME claims submitted to Medicare. To avoid Medicare scrutiny, the conspirators spread the fraudulent claims submitted to Medicare across three DME storefronts operated under the conspirators’ ownership and control.

Patsy Truglia and LouTricia Morgan previously pleaded guilty in separate cases for their roles in the charged conspiracies. Farese is presently awaiting sentencing in another case brought in New Jersey, charging him with money laundering.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the United States Department of Health and Human Services - Office of Inspector General and the Department of Veterans Affairs - Office of Inspector General. It will be prosecuted by Assistant United States Attorneys Jay G. Trezevant and Tiffany E. Fields. Assistant United States Attorney James A. Muench will be handling asset forfeiture matters in this case.