Former HME providers plead guilty to Medicare fraud

Tuesday, February 26, 2013

WASHINGTON ­– Two former owners of a Los Angeles-area HME wholesale company pleaded guilty to conspiring with their customers to defraud Medicare, according to a press release from the Department of Justice. Rajinder Singh Paul and Baljit Kaur Paul, the former owners of Major’s Wholesale Medical Supply based in Redlands, Calif., entered guilty pleas in the Central District of California Court to one count of conspiracy to commit healthcare fraud. According to court documents, the Pauls sold power wheelchairs to DME supply companies wholesale for between $850 to $1,000 each. The supply companies, however, billed these power wheelchairs to Medicare at a rate of between $3,000 to $6,000 per wheelchair. The Pauls also admitted to backdating and falsifying invoices for more than 100 different customers as part of the scam. At the sentencing, scheduled for July 8, the Pauls each face a maximum penalty of 10 years in prison and a $250,000 fine.