On May 16, 2022, the Department of Justice announced the conviction of owners and operators of four orthotic brace suppliers in Texas and Arkansas for a $6.5 million kickback scheme. 

 Bruce and Bobbi Stroud, husband and wife and residents of Prosper, Texas, along with Kenric Griffin of Frisco, Texas, jointly owned and operated four orthotic brace suppliers: New Horizons Durable Medical Equipment, Striffin Medical Supply, 4B Ortho Supply, and Grace Professional DME.

Evidence presented at trial showed that between January 2017 and April 2019, the Strouds and Griffin, through their companies, billed approximately $12.5 million in claims to Medicare for braces that the government deemed unnecessary. According to the government, the defendants were able to solicit brace orders in exchange for illegal kickbacks. Medicare paid the defendants approximately $6.5 million for those claims. The defendants were able to conceal the scheme by characterizing the kickback payments for the doctors’ orders as “marketing” expenses.   

The Strouds and Griffin were convicted of conspiracy to defraud the United States and to offer and pay illegal health care kickbacks, and seven violations of the Anti-Kickback Statute. Each defendant faces a total of up to 55 years in prison. Sentencing is scheduled for September 7.

The Government has a Fraud Section that leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants. 

The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with criminal healthcare fraud and government investigations. If you need assistance with such a matter, please contact us today.