Medical Equipment Business Owner Sentenced to Federal Prison and Ordered to Pay Restitution in the Amount of Over $1.3 Million

Louisville, KY–A former Kentucky man was sentenced this week to over 1 year in prison for engaging in a conspiracy to commit health care fraud and money laundering in connection with his Durable Medical Equipment (DME) businesses.

U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Special Agent in Charge Tamala Miles of the United States Department for Health and Human Services (HHS), Office of Inspector General, Office of Investigations, Atlanta Regional Office, made the announcement.

According to court documents, Shafi Abbas, 57, formerly of Pendleton, Kentucky, was sentenced to 1 year and 1 day in prison, followed by 2 years of supervised release, for one count of conspiracy to commit health care fraud and three counts of money laundering. Abbas, through his companies, Aidmen Medical Equipment LLC and Justright Medical Equipment LLC, fraudulently billed Medicare for Durable Medical Equipment, which was medically unnecessary, unwanted by patients, and not prescribed by the patients’ medical providers. Abbas further transferred funds, in criminally derived property of a value greater than $10,000, which came from specified unlawful activity, specifically the health care fraud conspiracy.

There is no parole in the federal system.

Abbas was also ordered to pay restitution in the amount of $1,333,722.21.

This case was investigated by the FBI and HHS.

Assistant U.S. Attorney Joe Ansari prosecuted the case.

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