Florida Man Sentenced in DME Money Laundering Scheme

NEWARK, New Jersey—A Florida man was sentenced to prison for allegedly laundering the proceeds of a health care fraud and kickback scheme involving durable medical equipment (DME) that caused millions of dollars in losses to Medicare and other insurance providers.

Thomas Farese, 83, of Fort Lauderdale, Florida, was sentenced to 24 months in prison followed by 6 months of home confinement. Farese previously pleaded guilty before United States District Judge Michael E. Farbiarz charged him with money laundering.

According to documents filed in this case and statements made in court, Farese allegedly invested in a DME supply company that was owned and operated by Aaron Williamsky, Nadia Levit and others involved in a large-scale health care fraud and kickback scheme that involved billing Medicare and other insurers for DME—including orthotic knee, elbow and back braces—that the receiving patients did not want or need. 

In April 2019, Williamsky, Levit and others were arrested and charged for their roles in the scheme. Farese allegedly learned of their arrests and fraudulent conduct shortly thereafter and communicated about it with his business partner, Patsy Truglia, who has been convicted for his role in the scheme. According to court documents, Farese then received into his bank account $495,000 in proceeds of the scheme.

In addition to the prison term, Judge Farbiarz sentenced Farese to three years of supervised release (including the 6 months of home confinement) and to pay $1.3 million in restitution to the victims. Judge Farbiarz also ordered forfeiture of $495,000, which constituted proceeds of the health care fraud scheme.