DME Owner Sentenced to 63 Months in Houston PWC Scam

HOUSTON–The owner of a Texas DME has been sentenced to 63
months in federal prison without parole for his role in a Texas
power wheelchair scheme.

Ita John Obot, 49, who was convicted of health care fraud after
pleading guilty Feb. 17, also was ordered to pay more than $4
million in restitution to Medicare and $478,274 to Medicaid,
according to a statement from the U.S. Attorney’s Office for the
Southern District of Texas.

According to U.S. Attorney Chuck Rosenberg, Obot is one of six
charged for involvement in a “well-organized scheme to defraud
Medicare and Medicaid.”

After the fraud scheme came to light, in late 2003 CMS and HHS’
OIG announced Operation Wheeler Dealer, a 10-point initiative aimed
at curbing fraud and abuse of Medicare’s power wheelchair benefit.
A few weeks later, a 101-count indictment charging the six
Houston-area individuals was unsealed. Defendants in the scheme
allegedly billed Medicare and Medicaid $32 million and received $16
million for fraudulent claims.

According to the statement, Obot’s role, which began in 2002 and
continued through May 2003, involved paying individuals to recruit
Houston-area Medicare and Medicaid beneficiaries, who were told
that the programs were providing free scooters.

Recruiters then transported beneficiaries to a medical clinic
operated by Dr. Anat Mauskar, a co-defendant convicted in November
2005 (see HomeCare
Monday, Nov. 21), who would sign CMNs for power
wheelchairs. Mauskar and his staff also would perform several
procedures, many of which were medically unnecessary, and then bill
Medicare and Medicaid for these services, the statement said.

Upon receiving the signed CMNs, the recruiters would deliver
them to Obot, an owner of Best Medical Equipment and Supplies in
Houston. Obot paid the recruiters between $200 and $500 for each of
the CMNs. Obot would then submit the claims to Medicare and
Medicaid, claiming power wheelchairs had been provided, when, in
fact, less expensive scooters or nothing at all was delivered.

The case was investigated jointly by the Federal Bureau of
Investigation, the HHS Office of Inspector General and the State of
Texas Office of the Attorney General Medicaid Fraud Control
Unit.