Telemedicine operator sentenced in multi-million DME fraud scheme
By HME News Staff
Updated 9:59 AM CST, Mon March 2, 2026
NEWARK, N.J. – The owner of two telemedicine companies was sentenced to seven years in prison and ordered to pay $27.9 million in restitution for his role in a scheme to fraudulently bill Medicare for unnecessary durable medical equipment (DME). According to court documents and statements made in court, Reinaldo Wilson, 57, formerly of Richmond Hill, Ga., owned and operated two telemedicine companies located in Bayonne, New Jersey between 2017 and 2019. Through these companies, Wilson and others paid illegal kickbacks to medical providers to sign orders for orthotic braces for Medicare beneficiaries, even though the beneficiaries did not need the braces. “Instead of connecting patients with legitimate care, Reinaldo Wilson used his telemedicine companies to exploit Medicare and line his own pockets,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “He stole over $27.9 million by submitting false and fraudulent claims, robbing a program designed to provide medical care to America’s seniors. The Criminal Division will aggressively prosecute those who defraud Medicare and exploit taxpayer-funded programs meant to serve the people who have paid into the system.” During the conspiracy, Wilson and others submitted more $56 million in false and fraudulent claims to Medicare. In March 2021, Wilson pleaded guilty to conspiracy to commit wire fraud and health care fraud.
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