Saturday, August 20, 2011

Adedayo O. Adegboye and Olalekan Rufai, Convicted of Health Care Fraud in Wheelchair Scam


OKLAHOMA CITY—Late yesterday, a jury found two New York men guilty of committing five counts of health care fraud in connection with the sale of power wheelchairs and wheelchair accessories to Medicare beneficiaries, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.

“Health care fraud affects all of us,” said U.S. Attorney Coats. “Fraud takes critical resources out of our health care system at the expense of the American taxpayer, patients, and private insurers, and drives up the cost of health care for everyone. I commend the efforts of the law enforcement agents and prosecutors who worked so diligently in prosecuting this case.”

ADEDAYO O. ADEGBOYE and OLALEKAN RUFAI, both age 48, and both of Brooklyn, New York, opened First Century Medical Supply, Inc., located in Oklahoma City, to engage in the business of selling power wheelchairs and wheelchair accessories to Medicare beneficiaries. Evidence at trial showed that from 2007 through 2009 the business obtained identification numbers and personal information from Medicare beneficiaries and used that information to submit claims to Medicare for power wheelchairs and wheelchair accessories. Evidence also showed that the defendants billed Medicare for some beneficiaries who did not receive a power wheelchair at all, some who received a less expensive motorized scooter, and for others who did not have a medical need for a wheelchair or did not even request a wheelchair. In all, the evidence showed that through First Century the defendants submitted over $1.1 million in fraudulent claims to Medicare.

Adegboye and Rufai were indicted by a federal grand jury in January of this year. The trial lasted approximately six days before the jury found the men guilty of committing five counts of health care fraud. The jury found the men not guilty of conspiracy. At sentencing, each of the men faces up to 10 years in prison and a $250,000 fine for each count, plus mandatory restitution. A sentencing hearing will be set by the court in approximately 90 days.

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