Today, United States Attorney Todd Gee announced criminal charges against a defendant in connection with an alleged conspiracy to defraud the United States. The charges filed in federal court are part of the Department of Justice’s 2024 National Health Care Fraud Enforcement Action. The charges stem from a scheme to pay kickbacks to a marketer in exchange for completed doctors’ orders so the defendant could cause his durable medical equipment companies to bill Medicare and Medicare Advantage plans for orthotic braces that were medically unnecessary and/or ineligible for reimbursement.
“This defendant engaged in a scheme that cost taxpayers in Mississippi and throughout the nation millions of dollars,” said U.S. Attorney Todd Gee. “The Department of Justice is committed to investigating and prosecuting fraud in Mississippi, and I encourage doctors, patients, and others that are aware of such schemes to report them to federal authorities.”
The charges announced today are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the Southern District of Alabama, District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Connecticut, Middle District of Florida, Southern District of Florida, Northern District of Illinois, Eastern District of Kentucky, Western District to Kentucky, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of New Jersey, Eastern District of New York, Eastern District of North Carolina, Western District of Oklahoma, District of Rhode Island, Eastern District of Tennessee, Middle District of Tennessee, Eastern District of Texas, Northern District of Texas, Southern District of Texas, Eastern District of Virginia, Western District of Virginia, Southern District of West Virginia, and Eastern District of Wisconsin; and State Attorney Generals’ Offices for Arizona, California, Illinois, Indiana, Louisiana, New York, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, and South Dakota are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
During the enforcement period, the Southern District of Mississippi worked with the Department’s Criminal Division, the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation to investigate and prosecute this case.
The defendant charged in the Southern District of Mississippi as part of this enforcement action is Reginald Fullwood, Jr., 59, of Madison, Mississippi. Fullwood was charged by information with conspiracy to defraud the United States in connection with a scheme to pay kickbacks to a marketer in exchange for completed doctors’ orders so that he could cause his durable medical equipment company, Jackson Medical Supply, to bill Medicare and Medicare Advantage plans for orthotic braces that were medically unnecessary and/or ineligible for reimbursement. When Medicare initiated an investigation of Jackson Medical Supply, the defendant opened another entity in the name of a nominee owner and again paid kickbacks to a marketer in exchange for doctors’ orders so that the new entity could continue to bill Medicare and Medicare Advantage plans for orthotic braces. Overall, Fullwood caused these entities to bill Medicare and Medicare Advantage approximately $12,441,625.30 and the entities were reimbursed approximately $6,448,092.61 for durable medical equipment that was medically unnecessary and/or ineligible for reimbursement.
The case is being prosecuted by Trial Attorney Sara Porter of the Gulf Coast Strike Force and Assistant United States Attorney Kimberly Purdie.
