Two Plead Guilty in Multi-State Health Care Fraud Scheme

TYLER — United States Attorney John M. Bales announced Wednesday that two men have pleaded guilty in Tyler to participating in a multi-state health care fraud scheme. Kevin Onwudiwe, 36, of Houston, pleaded guilty late Tuesday during an appearance before United States Magistrate Judge Judith Guthrie. Jasper Ogbonna, 41, of Newark, Delaware, pleaded guilty before Judge Guthrie on September 27. A sentencing date has not been set for either man.

According to information presented in Court, from August 2005 through April 2008, Ogbonna controlled and operated Matrix Medical Equipment and Supplies, Inc., in Weirton, West Virginia. Onwudiwe assisted in the operation of Nicco Medical Services, LLC in Little Rock, Arkansas. Both companies provided durable medical equipment to Medicare beneficiaries.

Ogbonna, Onwudiwe and their co-conspirators devised and carried out a scheme to defraud Medicare through the marketing of “ortho kits,” which consisted of a bag of orthotic items such as braces, wraps and supports. As part of the scheme, Ogbonna, Onwudiwe and their co-conspirators illegally obtained protected Medicare beneficiary health information, including names, dates of birth, and Medicare and Social Security numbers from elderly individuals. Approximately 509 Medicare beneficiaries in Texas and Louisiana were supplied with “ortho kits” which were not prescribed or authorized by a physician and were not wanted by the beneficiaries. In many instances, physicians’ signatures were forged and false claims were submitted by Medicare in the names of Medicare beneficiaries who were deceased.

Using protected health information, the defendants and their co-conspirators billed between $4,850 and $6,550 for each “ortho kit,” causing the submission of false and fraudulent claims to Medicare of more than $2.8 million dollars. As a result of these claims, Ogbonna, Onwudiwe and their co-conspirators unlawfully obtained more than $1,095,000.00 from Medicare.

This case was investigated by the United States Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU). The case is being prosecuted by Special Assistant United States Attorney Nathaniel Kummerfeld.