Florida Man Pleads Guilty in Medicare Prescription Kickback Scheme

A Florida resident has admitted to running a telemarketing‑driven scheme that generated medically unnecessary prescriptions and defrauded Medicare of more than $1.3 million. Federal prosecutors announced that Eric Van Vleet, 30, of Delray Beach, pleaded guilty in Newark federal court to conspiracy to commit health care fraud and conspiracy to violate the Anti‑Kickback Statute.

How the Scheme Operated

Between February 2018 and September 2019, Van Vleet operated Hype Med LLC, a company that used aggressive telemarketing tactics to pressure Medicare beneficiaries into accepting high‑priced prescription creams and medications they did not need. These included:

• Pain creams
• Scar and eczema creams
• Migraine medications
• A combination of drugs marketed as a “foot soak”

Call center employees recorded beneficiary calls and forwarded them—along with pre‑marked prescription pads designed to maximize reimbursement—to telemedicine companies. In return:

• Hype Med paid kickbacks to telemedicine companies for each beneficiary referral
• Telemedicine companies paid doctors to rubber‑stamp the prescriptions
• Van Vleet directed the prescriptions to cooperating pharmacies, including Apogee Bio‑Pharm LLC in Edison, New Jersey

The pharmacies billed Medicare and private insurers, then kicked back a portion of the reimbursement to Hype Med. Van Vleet and his company received at least $343,683.69 in kickback payments from Apogee’s owners.

Wider Criminal Network

The case is part of a broader investigation:

• Apogee’s principals—William Welwart, Ethan Welwart, and Gary Kaczka—are separately charged with health care fraud and related offenses
• Elan Yaish, Apogee’s former president, has already pleaded guilty to a kickback conspiracy

In total, Medicare paid over $1.39 million for prescriptions generated through Hype Med’s fraudulent scheme.

Potential Penalties

Van Vleet faces:

• Up to 10 years in prison for health care fraud conspiracy
• Up to 5 years in prison for the kickback conspiracy
• Fines of $250,000 per count, or twice the financial gain or loss, whichever is greater

Federal Agencies Involved

The investigation was led by:

• FBI – Newark Division
• HHS Office of Inspector General
• Department of Defense OIG – Defense Criminal Investigative Service

The case is being prosecuted by the U.S. Attorney’s Office for the District of New Jersey, General Crimes Unit.