Physician sentenced in DME fraud
By HME News Staff
Updated 9:56 AM CDT, Wed July 28, 2021
DELRAY BEACH, Fla. – A U.S. district judge has sentenced Dr. Richard Davidson of Delray Beach, Fla., to six years in federal prison for conspiracy to commit health care fraud. Davidson was charged with establishing a conglomerate of DME companies that were placed in the names of straw owners. By concealing the true ownership of the companies, he and his conspirators gained control of multiple companies, allowing them to submit high volumes of illegal DME claims, while attempting to evade law enforcement scrutiny. In one year, Davidson and his conspirators submitted more than $20 million in illegal DME claims, resulting in more than $10 million in payments from Medicare and the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA). As part of his sentence, the court ordered Davidson to forfeit approximately $650,000 in funds traceable to the offense or as substitute assets. The court also entered a money judgment of $2.47 million and ordered $10.72 million in restitution. Davidson, who plead guilty in September 2020, also lost his medical license due to his conviction.
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