News
The former co-owner of a Houston a durable medical equipment company has been convicted of bilking Medicare of nearly $1 million in a scheme involving adult diapers, federal authorities said.
Fred Jessie Cole Jr., 44, pleaded guilty to 14 counts of health care fraud connected to a scam to file fraudulent claims for incontinence supplies, such as diapers and briefs, federal authorities said late Monday.
Cole, who is free on bond, is scheduled to be sentenced Aug. 11.
He faces up to 10 years in prison, a fine of up to $250,000 and up to three years of supervised release.
Federal officials said Cole, who was co-owner of Crusade Integrated Health Services, admitted to submitting fraudulent claims to the Texas Medicaid Program for incontinence supplies that were either not delivered to Medicaid beneficiaries, wanted by Medicaid beneficiaries or medically needed.
Between May 3, 2003, and Sept. 1, 2006, Cole submitted $1,068,387 worth of claims for diapers and briefs to Medicaid and was paid $937,567 for those claims, federal officials said.
Federal authorities said he admitted to submitting claims to Medicaid for the delivery of 1,338,466 units of diapers and briefs when he only purchased 314,571 units for delivery and to forging the signatures of Medicaid beneficiaries on delivery tickets to cover up the fact that he was billing Medicaid for more than he was providing.
Fred Jessie Cole Jr., 44, pleaded guilty to 14 counts of health care fraud connected to a scam to file fraudulent claims for incontinence supplies, such as diapers and briefs, federal authorities said late Monday.
Cole, who is free on bond, is scheduled to be sentenced Aug. 11.
He faces up to 10 years in prison, a fine of up to $250,000 and up to three years of supervised release.
Federal officials said Cole, who was co-owner of Crusade Integrated Health Services, admitted to submitting fraudulent claims to the Texas Medicaid Program for incontinence supplies that were either not delivered to Medicaid beneficiaries, wanted by Medicaid beneficiaries or medically needed.
Between May 3, 2003, and Sept. 1, 2006, Cole submitted $1,068,387 worth of claims for diapers and briefs to Medicaid and was paid $937,567 for those claims, federal officials said.
Federal authorities said he admitted to submitting claims to Medicaid for the delivery of 1,338,466 units of diapers and briefs when he only purchased 314,571 units for delivery and to forging the signatures of Medicaid beneficiaries on delivery tickets to cover up the fact that he was billing Medicaid for more than he was providing.
