A Miami Beach, Florida, man admitted his role in a $4.2 million durable medical equipment (DME) healthcare fraud scheme that took place in New Jersey.
Christopher Vehovec, 31, pleaded guilty in New Jersey federal court to an information charging him with one count of conspiracy to commit healthcare fraud.
According to court documents, the DME healthcare fraud took place between February 2020 and April 2021. Vehovec and an unidentified co-conspirator struck a deal with Alexander Schleider, who owned and operated DME companies in New Jersey.
How the Scheme Worked
Vehovec would provide Schleider with completed doctors’ orders for orthotic braces, prosthetics and other medical equipment in exchange for payment, ranging from $175 to $325 for each order. Payment depended on the type of DME ordered.
The orders were obtained using telemedicine. Vehovec’s co-conspirator owned call centers in India that were used to target Medicare patients. Once the patients were identified, they used telemedicine companies to obtain signed doctor forms, even though the DME was not medically necessary.
Schleider then sent the DME to patients and billed Medicare, paying Vehovec kickbacks in exchange. Vehovec, in turn, used part of the kickbacks he received to pay for the DME orders.
Co-conspirator Pleads Guilty
In June 2023, Schleider pleaded guilty to one count of conspiracy to commit healthcare fraud and one count of wire fraud.
The wire fraud charges were in relation to funds made available in response to the COVID-19 pandemic. It was alleged that one of his DME companies received $322,237 from the Department of Health and Human Services’ Health Resources and Services Administration Provider Relief Fund, for providing diagnoses, testing, and care for patients with possible or actual cases of COVID-19 after Jan. 31, 2020.
In reality, the DME company had stopped billing for any services in April 2019. The money was used to purchase real estate and vehicles, among other things.
Others Involved
In another DME healthcare fraud case involving Schleider, another Florida resident identified as Patrick Fitchner, who with Steve Chicoye, owned and operated a DME supply company, pleaded guilty in August 2023 in New Jersey federal court to one count of conspiracy to commit healthcare fraud.
As we previously wrote about in this DME healthcare fraud scheme, Fitchner and others solicited and received kickbacks from Schleider in exchange for providing the DME companies with doctors’ orders for medically unnecessary equipment.
As in the Vehovec case, Fitchner defrauded the Medicare program. In this case for nearly $3.7 million.
Conspiracy to commit healthcare fraud is punishable by a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. Vehovec’s sentencing is scheduled for Feb. 27, 2025.
DME Healthcare Fraud Statistics
Each year, Medicare payments for durable medical equipment — prosthetics, orthotics, and supplies (DMEPOS) — top more than $7 billion in traditional Medicare alone, according to the federal government.
“Although CMS has a number of safeguards in place to prevent bad actors from billing DMEPOS in Medicare, fraudulent billing for DMEPOS continues to be a major concern, according to the Office of Inspector General (OIG).
What is the Government Doing?
In June, the OIG placed DME healthcare fraud on its Work Plan and said it would be looking at ways to prevent fraud and waste.
The OIG Work Plan is an ever-changing document that lays out the various audits, reviews, and inspections the OIG plans to conduct in relation to healthcare programs and services within a time frame.
The plan evolves and shifts to address emerging challenges and shifting priorities within the healthcare sector.
How We Can Help
The Health Law Offices of Anthony C. Vitale represents healthcare professionals in state and federal court who are charged with fraudulent billing, kickbacks, Medicare and Medicaid fraud and false claims, among others.
Our extensive experience and specialized knowledge in defending healthcare professionals in cases involving DME fraud, fraudulent billing, kickbacks, and Medicare fraud, we are committed to protecting your rights and providing a strong defense will ensure your case is handled with exceptional skill and care. For more information, contact us at 305-358-4500 or email info@vitalehealthlaw.com.
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