Ex-owners of DME wholesale company charged with fraud

Friday, October 12, 2012

ONTARIO, Calif. – The former owners of a DME wholesale company based here were arrested and charged Oct. 10 in connection with a fraud scheme involving $16.6 million worth of false claims, according to a Department of Justice news release. Rajinder Singh Paul and Baljit Kaur Paul, the former owners of Major’s Wholesale Medical Supply, were arrested on conspiracy and healthcare fraud charges. The couple allegedly sold high-end power wheelchairs to DME companies for about $1,000 per wheelchair, and then the DME companies, many of which were allegedly fraudulent, billed Medicare $3,000 to $6,000 per wheelchair. According to the indictment, the Pauls provided more than 170 DME companies with backdated, altered and fabricated invoices that reflected that the companies had purchased power wheelchairs and DME from Major’s earlier than they had. The DME companies then allegedly used these invoices to defraud Medicare or thwart audits. The couple allegedly received over $9.7 million from the fraudulent submissions.