Wisconsin Man Sentenced in $2M Medicare Fraud Case

MILWAUKEE, Wisconsin—Bruce Johnson, age 72, was sentenced to 18 months incarceration for conspiracy to pay health care kickbacks, in violation of the Anti-Kickback Statute (AKS).

Johnson and his co-defendant, Michael Comino, owned Kestrel Medical LLC, a company in Oconomowoc, Wisconsin, that supplied durable medical equipment (DME), including orthotic devices such as braces for ankles, knees, backs and shoulders. Johnson allegedly signed certifications on behalf of Kestrel stating that he would abide by all Medicare laws and regulations, including the AKS. In 2018, Johnson allegedly began paying kickbacks to multiple companies purporting to provide marketing services to Kestrel. The payments to the companies were for signed prescriptions for DME that Kestrel submitted to Medicare.

In February 2020, Comino became a 50% owner of Kestrel, which continued to offer and pay kickbacks for signed doctors’ orders. As a result of the conspiracy, Medicare paid over $2 million to Kestrel. Prior to Kestrel’s bankruptcy proceeding, Johnson also allegedly made two transfers totaling $150,000 to one of Comino’s companies as a way to divest Kestrel of assets.

At sentencing, Judge Joseph Stadtmueller noted the serious nature of Johnson’s criminal conduct and the need to deter others who might commit similar offenses. Judge Stadtmueller also ordered Johnson to serve three years on supervised release after his prison term and to pay over $2 million in restitution to Medicare. Johnson’s co-defendant, Comino, pled guilty to the same charge last year and was sentenced to 22 months’ imprisonment, as well as supervised release and restitution.

“Fraudsters like these are stealing directly from all of us out of utter greed,” said United States Attorney for the Eastern District of Wisconsin Brad Schimel. “As our nation debates how to make health care affordable, a critical first step is to stop fraud. Federal investigators and prosecutors have made it a top priority to get those who commit public benefits fraud locked up.”