New York Doctor Convicted of $24M Medicare Fraud Scheme

WASHINGTON—A New York doctor was found guilty on Monday, Feb. 10 by a federal jury for causing the submission of more than $24 million in fraudulent claims to Medicare for medically unnecessary orthotic braces and laboratory tests.

According to court documents and evidence presented at trial, Alexander Baldonado, 69, of Queens, received illegal cash kickbacks and bribes from the owner of a durable medical equipment (DME) supply company in exchange for ordering medically unnecessary orthotic braces for Medicare and Medicaid beneficiaries. The evidence presented at trial showed Baldonado on an undercover video receiving a large sum of cash in exchange for signed prescriptions for orthotic braces.

In addition to the orthotic brace scheme, Baldonado also received tens of thousands of dollars in illegal cash kickbacks and bribes in exchange for ordering laboratory tests, including expensive cancer genetic tests, that were billed to Medicare by two related laboratories located in New York.

The medically unnecessary laboratory tests and orthotic braces that Baldonado ordered in exchange for illegal kickbacks and bribes caused Medicare to be billed more than $24 million. Medicare paid more than $2.1 million to the laboratories and the DME supply company involved in the schemes.

Baldonado was found guilty of one count of conspiracy to commit health care fraud; six counts of health care fraud; one count of conspiracy to defraud the United States and to pay, offer, receive and solicit health care kickbacks; one count of conspiracy to defraud the United States and to receive and solicit health care kickbacks; and one count of solicitation of health care kickbacks. 

Following his conviction on the 10 counts, Baldonado was remanded to the custody of the U.S. Marshals Service. He is scheduled to be sentenced on June 26, 2025, and faces a maximum penalty of 10 years in prison on each count of conspiracy to commit health care fraud, health care fraud and solicitation of health care kickbacks and five years in prison on each count of conspiracy to defraud the United States and to pay, offer, receive and solicit health care kickbacks and conspiracy to defraud the United States and to receive and solicit health care kickbacks. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.