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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Texas

Friday, December 16, 2016

Former Employee at a National Medical Supply/Equipment Wholesaler Faces up to Three Years in Federal Prison for Scheme to Steal Medical Products and Sell Them to Internet

DALLAS — A former Carrollton, Texas, resident who worked as a sales agent for a national medical supply/equipment wholesaler, appeared in federal court yesterday and pleaded guilty to his role in a scheme to steal and resell pre-retail medical products, announced U.S. Attorney John Parker of the Northern District of Texas.

Daniel Edward Shrout, 59, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of theft of medical product.  He faces a maximum statutory penalty of three years in federal prison and a $250,000 fine.  Shrout, who now resides in Oklahoma, must also forfeit medical equipment that law enforcement seized from him during the investigation.  A sentencing date was not set.

According to plea documents filed in the case, prior to his offense, Shrout worked for a lengthy period of time for Company A, a national wholesale distributor of medical supplies and equipment to office-based physicians and long-term health care providers.  Company A is located in the Northern District of Texas.

Beginning on approximately January 12, 2012, Shrout manipulated and exploited Company A’s customer accounts to create false purchases and divert pre-retail medical products.  Shrout then resold the stolen product via mass marketing over internet sales websites through an entity he created, Signature Surgical Supply, LLC.

Shrout caused private carriers, including UPS, to deliver the stolen product to him at locations under his control in Allen, McKinney, and Plano, Texas.  As a result of Shrout’s scheme, Company A suffered a $594,849 loss.

The case is being investigated by the FBI.  Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.

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Financial Fraud
Updated December 16, 2016