Category Archives: Medicare Abuse

Florida Man Admits Role in Medicare Kickback Scheme for Unnecessary Prescriptions

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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.

New York Doctor Sentenced for Kickback Scheme Involving Unnecessary Brain Scans

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A New York Doctor Sentenced for Fraudulent Brain Scan Scheme A New York physician has been sentenced in federal court for participating in a long‑running kickback scheme that involved ordering medically unnecessary brain scans. The scheme highlighted how kickbacks involving unnecessary brain scans functioned within fraudulent activities. According to federal prosecutors justice.gov, Dr. Vishnudat Seodat, 76, of Mattituck, New York, received cash payments in exchange for directing patients to undergo transcranial doppler (TCD) scans they did not need. On December 17, 2025, U.S. District Court Judge Nathaniel M. Gorton sentenced Seodat to two years of supervised release, including one year … Read More

Patients Choice Laboratories Pays $9.6M to Settle Medicare Kickback and False Claims Allegations

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Indianapolis, Indiana – Patients Choice Laboratories (PCL), a diagnostic lab headquartered in Indianapolis, has agreed to pay $9.62 million to resolve allegations of violating the False Claims Act and the Anti-Kickback-Statute This Indiana Laboratory Fraud Settlement marks a significant legal resolution. Federal prosecutors allege that PCL knowingly billed Medicare for respiratory pathogen panels (RPPs) that were either medically unnecessary or obtained through kickbacks, contributing to the Indiana Laboratory Fraud Settlement. The lab also paid commissions to independent sales representatives and marketing firms based on referral volume, a clear violation of federal law. In November 2020, PCL entered into a Marketing Services … Read More

$37M Settlement in Medicare Fraud Device Scheme: Semler & Bard Misled Providers on PAD Tests

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Two medical device companies—Semler Scientific Inc. and Bard Peripheral Vascular Inc.—will pay nearly $37 million to resolve allegations tied to a Medicare Fraud Device Scheme. The U.S. Department of Justice (DOJ) claims both companies knowingly caused healthcare providers to submit false Medicare claims for vascular tests using Semler’s FloChec and QuantaFlo devices. These devices, which rely on photoplethysmography—a method not covered by Medicare—were falsely promoted as qualifying for reimbursement under CPT codes 93922, 93923, and 93924. The settlement addresses claims that both companies knowingly caused healthcare providers to submit false Medicare claims for tests using Semler’s FloChec and QuantaFlo devices. … Read More

Prenatal Medicaid Fraud Scheme Fraudster Convicted in Precious Cruse, Case

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On September 12, 2025, Precious Cruse, the former owner and operator of Milwaukee’s now-defunct Caring Through Love prenatal care coordination business, was found guilty of Prenatal Medicaid Fraud Scheme on seventeen federal charges, including healthcare fraud, making false statements related to health care matters, anti-kickback statute violations, aggravated identity theft, and money laundering. justice+1 Evidence showed that Cruse targeted vulnerable pregnant women and young mothers, enticing them to enroll in her company’s prenatal care coordination program with kickbacks such as free baby supplies. After enrollment, the company used the women’s personal information to file false Medicaid claims for services never … Read More

Keep Current with Electronic Medicare Summary Notices to Review for Fraud

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It’s easy, quick to access, and review your electronic Medicare Summary Notices (MSNs).  Learn what has been sent to Medicare and review for fraud. With electronic Medicare Summary Notices (MSNs), you can see your claims faster, making it easier to spot fraud. Any month you have processed claims, you’ll get a secure link to your eMSN. Sign up or log in to your secure Medicare account and stay current: https://t.co/JdyJkOI8Od pic.twitter.com/hCCL228kOZ — Medicare.gov (@MedicareGov) September 10, 2025

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