Three Houston defendants have pleaded guilty in connection with an “arthritis kit” fraud scheme. Bassey Monday Idiong, Linda Eteimo Ere Kendabie, and Modupe Babanumi each pleaded guilty on March 1 in connection with their roles in an “arthritis kit” Medicare fraud scheme, announced a team of Justice Department officials led by Assistant Attorney General Lanny A. Breuer of the department’s U.S. criminal division.
Idiong, 30, was the owner of B.I. Medical Supply, Houston, a durable medical equipment (DME) company. Kendabie, 27, was an administrative assistant at B.I. Medical and Babanumi, 42, was a patient recruiter. Idiong pleaded guilty to conspiracy to commit healthcare fraud and to five counts of healthcare fraud. Kendabie and Babanumi each pleaded guilty to conspiracy to commit healthcare fraud.
The defendants admitted that B.I. Medical billed Medicare for rigid orthotics and braces that were packaged together and referred to as an “arthritis kit,” at a cost of approximately $4,000 per kit, when in fact, they were supplied with different, less expensive products. The defendants also admitted that the equipment supplied was not medically necessary. In one instance, according to the plea agreements, B.I. Medical billed Medicare for an arthritis kit that included two knee braces for a beneficiary who had only one leg. In total, B.I. Medical submitted approximately $846,000 in fraudulent claims to Medicare.
U.S. District Court Judge Vanessa Gilmore of the Southern District of Texas accepted the defendants’ guilty pleas and scheduled sentencing for June 14, 2010. For each count, the defendants each face a maximum penalty of ten years in prison and a $250,000 fine.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section. Since its inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 500 individuals who collectively have falsely billed the Medicare program for more than $1.1 billion. In addition, the Centers for Medicare and Medicaid Services (CMS), working in conjunction with the Health and Human Services Office of the Inspector General (HHS-OIG), are taking steps to increase accountability and decrease the presence of fraudulent providers.
