Lawrence Tyler, 41, has been convicted of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, announced Attorney Kenneth Magidson. The verdict was returned just moments ago, following five days of trial and less than four hours of deliberation.
Tyler, of Humble, ran a durable medical equipment company called 1866-ICPayday.com from 2006 to 2008.
The evidence at trial showed that between January 2007 and December 2008, Tyler engaged in a scheme to defraud Medicare and Medicaid. Tyler falsely billed Medicare and Medicaid for so-called “ortho kits,” which consisted of an assortment of various back, knee, ankle, wrist, and shoulder braces, that was never delivered. Prescriptions were obtained 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. During the conspiracy, Tyler submitted approximately $3 million in claims for durable medical equipment and was paid approximately $1.4 million by Medicare and Medicaid.
The evidence at trial also showed that Tyler paid kickbacks to a recruiter named Birdie Leroy Revis in exchange for beneficiary information and false prescriptions issued by Revis’ cousin, Dr. John Perry. Many of the beneficiaries testified that they did not know Perry and had never been treated by him. Revis was convicted of illegally receiving kickbacks, while Perry was convicted of conspiracy to commit health care fraud in separate cases.
In addition, the evidence showed Tyler conducted a monetary transaction in criminally derived proceeds when he withdrew approximately $140,000 from Wachovia Bank, which was proven to be the proceeds of the health care fraud conspiracy.
Tyler faces up to five years in prison for the conspiracy, as well as up to 10 years for each count of health care fraud and money laundering in addition to substantial fines.
The case was the result of a joint investigative effort of the FBI, the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services-Office of Inspector General, Office of Investigations, and the U.S. Attorney’s Office. Special Assistant United States Attorneys Suzanne Bradley and Adrienne E. Frazior prosecuted the case.