Orthotic Brace Suppliers Convicted in $6.5M Fraud Scheme

A Texas jury convicted owners and operators of four Texas and Arkansas orthotic brace suppliers for a $6.5 million illegal kickback scheme, which included federal Anti-Kickback Statute violations. Each defendant faces up to 55 years in prison.
 
Bruce Stroud, 40, Bobbi Stroud, 39, husband and wife and residents of Prosper, Texas, and Kenric Griffin, 52, of Frisco, Texas, jointly owned and operated four orthotic brace suppliers: New Horizons Durable Medical Equipment, Striffin Medical Supply, 4B Ortho Supply, and Grace Professional DME.
 
Evidence showed between January 2017 and April 2019 the parties caused about $12.5 million to be billed in Medicare claims for unnecessary braces, based on order received in exchange for illegal kickbacks. Medicare paid the defendants about $6.5 million for the claims.
 
The parties concealed the scheme through numerous sham agreements with alleged marketing companies that called the illegal payments for orders “marketing” expenses.
 
The Strouds and Griffin were convicted of conspiracy to defraud the U.S. as well as seven violations of the Anti-Kickback Statute. Sentencing is scheduled for September 7.