Man Sentenced for $11.4M Medicare, Medicaid Fraud Scheme

LOUISIANA—A Louisiana man was sentenced to three years in prison for his role in a multi-year scheme to bill Medicare and Medicaid for medically unnecessary durable medical equipment (DME).

According to court documents, from January 2016 to June 2022, Craig L. Lovelace, of Destrehan, billed Medicare and Medicaid through his DME supply company, Advanced Medical Equipment, Inc. (AME), approximately $11.4 million for supplying respiratory support and nutritional support DME—including ventilators, tracheostomy supplies and feeding tubes—that were not medically necessary or not provided as represented, and for which AME was paid approximately $7.96 million. Lovelace then directed the forgery of medical records, physician notes and provider signatures in response to audits and record requests to cover up the scheme. Lovelace personally obtained over $3.4 million in proceeds from the scheme, which he used to pay for personal vehicles, personal chef services, events and entertainment.

On Aug. 17, Lovelace pleaded guilty to health care fraud.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at justice.gov/criminal-fraud/health-care-fraud-unit.