FBI Raids Diabetic Supply Company Amid Medicare Fraud Accusations and Whistleblower Lawsuit By Tod Aronovitz | 01/16/15 | 0 Comment

Med-Care Diabetic & Medical Supplies, Inc. was the focus of a federal raid on January 14, when agents from the FBI and IRS arrived at the company’s Boca Raton offices on Clint Moore Road to conduct their investigation. The firm is the target of a whistleblower lawsuit and alleged accusations of Medicare fraud.

A front-page story in the Sun Sentinel reports that the company has ties to Daniel Porush, the man who actor Jonah Hill loosely portrayed in his character, Donnie Azoff, in the 2013 movie, “The Wolf of Wall Street.” The dark comedy followed the story of Porush’s associate, Jordan Belfort, throughout his career as a New York stockbroker and recounts the widespread corruption and fraud that took place at his firm, Stratton Oakmont, where Porush also worked as a partner. Both Porush and Belfort were convicted of stock fraud and served federal prison time.

Med-Care Diabetic & Medical Supplies president and CEO Dr. Steven Silverman, who airs a daily public service announcement on NBC 6 South Florida about diabetes care, testified at a 2013 U.S. Senate subcommittee hearing for possible Medicare fraud, as we posted on our ARONOVITZ LAW Blog, “Boca Raton Medical Supply Company Questioned in Medicare Fraud Billing Investigation.”

At that hearing, a sample of the company’s Medicare claims was examined further. The investigation was prompted by a Missouri doctor who contacted the Department of Health and Human Services and U.S. Sen. Claire McCaskill to alert them of potential fraudulent activity by the company. Med-Care Diabetic & Medical Supplies allegedly requested physician approvals for expensive medical supplies that were not ordered and inappropriately solicited patients through telemarketing.

An audit by the Centers for Medicare and Medicaid Services showed that 400 out of a sample of 590 claims made by the company were “improper.” Although the company received $146,689 in overpayments, an analyst at the hearing estimated the overpayment amount really ran in the millions.

A statement issued by Med-Care Diabetic & Medical Supplies’ attorney Justin Weddle said that the company was working with federal authorities and has “nothing to hide.”

“Med-Care Diabetic & Medical Supplies, Inc. has always been fully transparent in cooperating with regulatory or governmental inquiries that it receives,” the statement reads. “This inquiry is no different.”

According to business records, Porush’s wife, Lisa, is the vice president of Med-Care Diabetic & Medical Supplies, which happens to be located in the same office as the Christian Diabetic Network, a company owned by Daniel Porush, the Sun Sentinel reported.

There is a 2010 whistleblower lawsuit still pending against Med-Care Diabetic & Medical Supplies. Former employee Tiffany Bumbury, who was a telemarketer at the company, is alleging that Med-Care Diabetic & Medical Supplies participated in illegal marketing techniques and billed for unnecessary medical supplies. Med-Care Diabetic & Medical Supplies, Silverman, and Porush are all named as defendants, individually.

How to Report Miami Medicare Fraud

Healthcare professionals or medical billing employees who have knowledge of questionable Medicare billing practices can file a confidential legal claim under the False Claims Act. By acting as a “whistleblower” in what is known as a “qui tam” lawsuit, a private party may collect up to 30 percent of the amount recovered, depending on how the case is prosecuted.

ARONOVITZ LAW: Miami Whistleblower / Qui Tam Law Firm

The Miami Qui Tam law firm of ARONOVITZ LAW routinely works with whistleblowers to document Medicare fraud and other forms of fraud against the government. Contact Miami Whistleblower / Qui Tam lawyer Tod Aronovitz to discuss your case.