Thursday, April 14, 2011

$27 Million in Medicare Shoe Fraud

U.S. Attorney James Santelle has reached a $27 million plea agreement with Rickey Kanter, former CEO of Rikco International in Mequon, resolving allegations of fraud against the Medicare program.  The agreement arose out of an investigation that Kanter, doing business as "Dr. Comfort," sold shoe inserts for diabetic patients that were falsely represented and marketed as conforming to Medicare's requirements for those products.  Many of those products were provided to beneficiaries of the Medicare program in 2004 and the inserts were reimbursed by Medicare. Despite being advised that the inserts did not conform to Medicare’s requirements, Kanter continued to sell the non-compliant inserts in 2006.  Pursuant to the plea agreement, Kanter has agreed to plead guilty to a felony charge of mail fraud. The government has agreed to recommend that Kanter be sentenced to 18 months in prison. Kanter is free to argue for a lower sentence. His sentence will be determined by a federal judge at a later date.  The whistle blowers, both former employees of Dr. Comfort, will receive payments totaling more than $4.8 million from the civil recovery.
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