Lakewood man admits role in causing $21.7M in losses to healthcare benefit programs
TRENTON - A Lakewood man who owned medical equipment companies admitted Friday to engaging in a kickback scheme that cost almost $22 million in losses to healthcare benefit programs, U.S Attorney Philip R. Sellinger said.
Alexander Schleider, 57, pleaded guilty before U.S. District Judge Michael A. Shipp in federal court in Trenton to one count each of wire fraud and conspiracy to commit health-care fraud.
Schleider owned and operated medical equipment companies that provided orthotic braces without regard for medical necessity to beneficiaries of Medicare and other federal and private healthcare benefit programs, according to documents and statements made in court.
Schleider and his conspirators obtained prescriptions for the braces by paying kickbacks and bribes to operators of marketing call centers who used telemedicine companies to obtain the prescriptions, according to documents and statements in court.
Schleider caused $21.7 million in losses to Medicare and other healthcare benefit programs, authorities said.
Schleider also admitted to wire fraud in connection with $322,237 that one of his companies received from the Department of Health and Human Services in response to the COVID-19 pandemic, authorities said. He provided an attestation to the department falsely claiming that his company provided diagnoses, testing and care for individuals with possible or actual cases of COVID-19 after Jan. 31, 2020. In reality, the company had stopped billing for any services in April 2019, authorities said.
The attestation also falsely claimed the funds would only be used to prevent, prepare for and respond to the coronavirus and reimburse the company for healthcare-related expenses or lost revenues attributable to the pandemic, authorities said. Instead, Schleider transferred the money into other accounts and used it to purchase real estate, vehicles and other items, authorities said.
Conspiracy to commit healthcare fraud is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater.
Wire fraud is punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater.
Schleider's sentencing is scheduled for Nov. 8.
Kathleen Hopkins, a reporter in New Jersey since 1985, covers crime, court cases, legal issues and just about every major murder trial to hit Monmouth and Ocean counties. Contact her at khopkins@app.com
This article originally appeared on Asbury Park Press: Lakewood man admits role in $22 million healthcare fraud scheme
