A U.S. Department of Veterans Affairs (VA) official and durable medical equipment (DME) vendor have been charged with conspiracy to commit healthcare fraud. The charges against Timothy Rouch, the former chief of prosthetics at the VA Medical Center West Palm Beach, Florida, and Frankie Lane, owner of AAA Medical Discount, Boca Raton, Florida, were announced October 16 by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Monty Stokes, special agent in charge, VA, Office of Inspector General.
According to the information-which is only an accusation and not evidence of guilt-the defendants conspired to fraudulently bill the VA Medical Center West Palm Beach for DME that was never provided to veterans. The VA official solicited and received kickbacks from the vendor. AAA Medical Discount sold more than $2.2 million in DME to the VA from 2006-2010.
If convicted, each faces a statutory maximum penalty of up to ten years in prison, to be followed by up to a three-year term of supervised release, and imposition of a $250,000 fine in addition to payment of restitution.