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West Des Moines Man Pleads Guilty to False Claims Act Investigation For Almost $900,000

by | Jun 20, 2017 | Firm News

A durable medical equipment store owner who provided false documents to the United States Attorney’s Office during a civil False Claims Act investigation pled guilty today in federal court in Cedar Rapids.

James O’Connor, 64, from West Des Moines, Iowa, was convicted of one count of Making and Using False Documents, in violation of 18 U.S.C. § 1001(a)(3).

In a plea agreement, O’Connor, who operated O’Connor Medical Supply, Inc., in Clive, agreed that he provided a false document to the United States Attorney’s Office in response to a Civil Investigative Demand the office issued in conjunction with a civil False Claims Act investigation. Specifically, O’Connor admitted to providing a false Letter of Medical Necessity intended to conceal the fact that he previously submitted a claim to Medicare for a more complex and more expensive orthotic device than what he actually provided to a Medicare beneficiary. O’Connor further admitted that, for purposes of sentencing, he caused nearly $350,000 in loss.

O’Connor also entered into a settlement agreement to resolve the United States’ civil False Claims Act investigation. As part of that investigation, the United States alleged that O’Connor submitted claims to Medicare and Medicaid for four more expensive models of durable medical equipment than what he actually provided to beneficiaries: ankle foot orthoses, walking boots, knee braces, and wrist finger orthoses. O’Connor agreed to pay $898,523.08 to resolve these allegations.

Read the rest of the story from the Department of Justice here.

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