A telemedicine company owner pleaded guilty in connection with a $110 million fraud scheme involving medically unnecessary durable medical equipment.
Between March 2016 and January 2023, Steven Richardson, owner of Expansion Media and Hybrid Management Group, entered into business relationships with companies that generated leads by targeting Medicare patients, according to an April 4 news release from the Justice Department.
Telemarketers paid the telemedicine companies to generate medically unnecessary orders for durable medical equipment. Additionally, Mr. Richardson worked with staffing companies to find physicians and nurses willing to sign pre-filled orders.
Mr. Richardson then provided signed orders to the telemarketing companies, which sold the orders to DME suppliers.