Florida Man Indicted for $97M DME Fraud Scheme

NEWARK, New Jersey—A Florida man was charged in an indictment unsealed today for his role in durable medical equipment (DME) kickback scheme that caused $97 million in losses to Medicare, Attorney for the United States Vikas Khanna announced.

Raheel Naviwala, 35, of Coral Springs, Florida, is charged in a 10-count indictment with one count of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, two counts of wire fraud, one count of conspiracy to violate the federal Anti-Kickback Statute and three counts of illegal kickbacks.  

According to documents filed in the case and statements made in court Naviwala and his conspirators owned and operated multiple call centers through which they obtained doctors’ orders for DME—orthotic braces—for Medicare beneficiaries, without regard to medical necessity. Naviwala and his conspirators obtained the DME orders through the use of marketing call centers and telemedicine companies. Naviwala and his conspirators provided these DME orders in exchange for bribes from certain companies of $125 to $450 per brace. Naviwala and his conspirators caused losses to Medicare in excess of $97 million and received kickbacks in excess of $46 million.

Conspiracy to commit health care fraud and wire fraud is punishable by a maximum potential penalty of 20 years in prison. Each count of health care fraud is punishable by a maximum potential penalty of 10 years in prison. Each count of wire fraud is punishable by a maximum potential penalty of 20 years in prison. Conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. Each count of illegal kickbacks is punishable by a maximum potential penalty of 10 years in prison.  Each count is also punishable by a fine.

The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.