HOUSTON – Lawrence T. Tyler, 40, has been indicted on charges of health care fraud and conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today. The nine-count indictment, returned Wednesday, Dec. 12, 2012, was unsealed today upon his arrest without incident.
The indictment alleges that from 2007 to 2009, Tyler falsely billed Medicare and Medicaid for so-called “ortho kits” which consisted of an assorted of various back, knee, ankle, wrist and shoulder braces. Tyler allegedly billed for equipment that was never delivered, billed for equipment using prescriptions from a physician who never treated the patients, and upcoded - billed for a higher reimbursed brace but delivered a cheaper brace that either did not fit the billing code or did not qualify for any Medicare reimbursement. In addition, as part of the conspiracy, the indictment alleges Tyler paid a marketer for patient billing information, a violation of the federal anti-kickback statute.
Tyler, under the company name, 1866ICPAYDAY.COM LLC, allegedly billed Medicare and Medicaid approximately $3 million and was paid approximately $1.4 million.
The statutory maximum penalty for a violation of the health care fraud statute is imprisonment of not more than 10 years and a maximum $250,000 fine. If convicted of the conspiracy he also faces up to five 5 years in prison and another $250,000 fine.
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