Archer City man accused of conspiring to bilk Medicare out of millions of dollars
An Archer City man is accused of conspiring in a $60 million fraud and kickback scheme to cheat Medicare with U.S. and offshore co-conspirators.
Robert Leon Smith III has been charged for his alleged role in a health care fraud, wire fraud and kickback scheme involving false Medicare claims, according to a U.S. Department of Justice media release and federal court documents.
Smith, 48, was indicted by a federal grand jury Dec. 13 in Miami earlier for charges connected to submitting fraudulent claims for medically unnecessary durable medical equipment, genetic tests and foot bath medications.
In addition, the DOJ is seeking the forfeiture of property listed as Smith's residence, including structures and land, in the 500 block of North Sycamore Street in Archer City, federal court records show.
His arraignment was set for Jan. 4 in the West Palm Beach Division of U.S. District Court.
Anyone charged with a crime is innocent until proven guilty in a court of law.
Magistrate Judge Ryon M. McCabe of the West Palm Beach Division set Smith's bail at $700,000 during a hearing Dec. 15. It was unclear Tuesday evening if Smith remained in custody.
A nine-count indictment handed down Dec. 13 and a DOJ media release detailed the allegations against Smith, who has owned and operated a network of durable medical equipment companies in Florida, Texas and Maryland.
The indictment charges Smith with:
One count of conspiracy to commit health care fraud and wire fraud in connection with allegations August 2018 through December 2022 in Palm Beach County and elsewhere. The offense is punishable by up to 20 years in prison.
Five counts of health care fraud in the same time frame and location. Each charge has a maximum punishment of 10 years in prison.
One count of conspiracy to defraud the United States and to pay and receive health care kickbacks — same time period and location. The crime is punishable by up to five years in prison.
Two counts of solicitation and receipt of health care kickbacks, each with a maximum penalty of up to five years in prison. Smith is accused of getting a $120,000 payment through wire transfer Jan. 22, 2020, and another $120,000 payment via wire transfer Jan. 28, 2020.
If Smith is convicted, a federal district court judge will determine his punishment after considering the U.S. Sentencing Guidelines and other statutory factors.
Medicare pays for medically reasonable, necessary services and items that are eligible for reimbursement and provided as they have been represented to be. But the federal program does not pay for items and services obtained through illegal payments.
Smith is accused of billing Medicare for medically unnecessary orthotic braces that were not eligible for Medicare reimbursement.
More: DPS: Fleeing driver's pickup crashes into three vehicles Tuesday in Clay County
Orthotic braces provide support to treat a range of conditions, including foot pain, arthritis and muscular dystrophy.
Smith also allegedly referred doctors’ orders for unnecessary orthotic braces, genetic tests and foot bath medications to other medical equipment suppliers, pharmacies and laboratories to receive kickbacks and bribes.
He is suspected of paying kickbacks and bribes to offshore call centers operated by co-conspirators to get Medicare beneficiary information and falsified doctors’ orders.
These offshore call centers allegedly deployed deceptive tactics to pressure Medicare beneficiaries to accept the orthotic braces, genetic tests and foot bath medications.
Smith and his co-conspirators are accused of paying kickbacks and bribes to offshore call centers in exchange for the Medicare beneficiary information, sometimes together with a forged doctor’s order.
He also allegedly paid kickbacks and bribes to purported telemedicine companies to get doctors’ orders signed by telemedicine practitioners who did not actually examine or treat the Medicare beneficiary.
Smith is suspected of using some doctors’ orders he acquired from anteing up illegal payments to bill Medicare through his own network of durable medical equipment companies.
He also allegedly referred doctors’ orders to other medical equipment suppliers, pharmacies and labs in exchange for illegal payments.
More: Clay County man indicted on charges for cycling couple's death
Among the companies listed in the indictment as firms he owned and/or managed are TB Interests, purportedly a marketing services firm, and a string of companies that provided braces, including Sunshine Senior Solutions, Med-Care Supplies, Trojan Medical Supply Corp., BC Medical Supply, Trusted Medical Supply, Victory Medical Supply and Optimum Medical Supplies.
His alleged co-conspirators include an unnamed Philippines resident who operated a purported call center and marketing company in that country.
The indictment also alleges other conspirators:
Victor Van Vickery, a Palm Beach County, Florida, man involved in the medical equipment business with Smith
Charles Schwartz, owner of Upon Demand in Coral Springs, Florida
Michael McCormac, owner of GoLiveWell Pharmacy in St. Louis, Missouri
Marc Sporn, owner of Medtech Worldwide Inc. in Boca Raton, Florida
An unnamed Philippines resident who operated a purported call center and marketing company in that country.
The FBI Miami Field Office and the U.S. Department of Health and Human Services-Office of the Inspector General are investigating the case. Andrea Savdie, trial attorney for the DOJ Criminal Division’s Fraud Section, is prosecuting.
Brian Rafferty of Atlanta, Georgia, represented Smith during the Dec. 15 hearing.
Trish Choate, enterprise watchdog reporter for the Times Record News, covers education, courts, breaking news and more. Contact Trish with news tips at tchoate@gannett.com. Read her recent work here. Her X handle is @Trishapedia.
This article originally appeared on Wichita Falls Times Record News: Archer City man indicted in connection with massive Medicare fraud
