Florida Man Convicted In Multimillion-Dollar Medicare Fraud Scheme

The United States Attorney for the Southern District of New York, Jay Clayton, announced today the conviction of TED ALBIN for his role in orchestrating a multimillion-dollar Medicare fraud scheme.  ALBIN was convicted following a 12-day jury trial before U.S. District Judge John G. Koeltl.

“Ted Albin brazenly defrauded our Medicare system using fake and fraudulent prescriptions,” said U.S. Attorney Jay Clayton.  “He cheated Medicare out of millions meant for real patients with every taxpayer footing the bill.  Today’s verdict makes clear: if you cheat Medicare, you will be prosecuted.”

According to court documents and evidence presented at trial:

From approximately 2016 through April 2021, ALBIN operated Grapevine Professional Services (“Grapevine”), a medical billing company, which he used to submit fraudulent reimbursement claims for durable medical equipment (“DME”), including back braces, knee braces, wrist braces, and shoulder braces.  ALBIN submitted thousands of fraudulent claims on behalf of DME supply companies that had engaged Grapevine for its billing services, including at least three DME supply companies owned and controlled by ALBIN and his sister, Erin Foley—Liberty Bell Medical, Skye Medical, and Priority Medical.  ALBIN’s fraudulent claims were based on prescriptions for DME which he knew had been illegally bought with kickbacks paid by the DME supply companies.  At least some of the kickback-tainted prescriptions billed by ALBIN were generated with forged doctor’s signatures and without regard to the medical need of the patients for whom braces had been prescribed.  ALBIN knew of the fraudulent nature of the claims he submitted to Medicare and nonetheless continued to submit such claims, over and over, for years. In total, the DME companies that ALBIN submitted claims for billed Medicare for over $38 million, on which Medicare paid out over $12 million.

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ALBIN, 48, of Stuart, Florida, was convicted of one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years; one count of health care fraud, which carries a maximum sentence of 10 years; one count of wire fraud, which carries a maximum sentence of 20 years; and one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years.  ALBIN is scheduled to be sentenced on December 10, 2025.

Mr. Clayton praised the outstanding investigative work of the U.S. Department of Health and Human Services – Office of Inspector General.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys William Kinder, Jackie Delligatti, Brandon Thompson, and Ryan Finkel are in charge of the prosecution.