The CEO of a string of Savannah-based durable medical equipment companies was sentenced to more than three years in prison for a scheme that defrauded Medicare out of millions of dollars.
Roderic Bain, 57, of Savannah, who pled guilty to one count of False Statements Relating to Health Care Matters, was sentenced in U.S. District Court in Savannah to serve 40 months in prison and to pay more than $1.9 million in fines and restitution, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
According to court documents, Bain oversaw a multi-year scheme resulting in nearly $10 million in claims billed to Medicare. Working with a number of others, Bain operated a network that paid kickbacks to obtain patient information, specifically Medicare patients. Through a third-party biller, Bain would then bill Medicare Part B and Part C plans for medically unnecessary medical equipment and orthotics, including a variety of back and knee braces that were not ordered as medically necessary by a physician. During the course of the investigation, agents determined Bain and his affiliates were linked to a larger nationwide scheme, recently announced as “Operation Brace Yourself.” Bain is the first defendant sentenced under the ongoing investigation.
This investigation remains ongoing. Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and medical equipment marketing schemes should report this conduct to the FBI hotline at 1-800-CALL-FBI. Any beneficiaries who believe their identity may have been used fraudulently also should contact the FBI hotline.