DME owner sentenced for ‘lead’ scam
By HME News Staff
Updated 9:33 AM CDT, Mon October 10, 2022
CAPE GIRARDEAU, Mo. – U.S. District Judge Stephen N. Limbaugh sentenced a businessman from Jackson, Mo., to 30 months in prison for health care fraud and ordered him to repay $7.5 million. Jamie McCoy, 42, pleaded guilty on Nov. 23, 2020, to three felony counts: committing health care fraud, making false statements related to health care matters, and offering and paying illegal kickbacks for referrals. He admitted owning or operating companies that supplied orthotic braces and other DME: AE Wellness, Summit Medical Supply, Patriot Medical Supply. McCoy contracted with marketing firms who placed ads on television and online that offered orthotic braces at no cost. The companies sent patient information to a telemedicine doctor who signed an order for medical equipment without evaluating or even communicating with the patient in some cases, McCoy’s plea agreement says. Those leads, consisting of the patient information and the medical equipment order, were then sold to DME companies. McCoy admitted paying 70% to 80% of his profits to one person who supplied leads to AE Wellness. Another received $35-40 for leads without a doctor’s order and $280-$300 for a “full lead.”
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