LAKEWOOD – A man admitted his role in a $21.7 million scheme that involved fake prescriptions for orthotic braces.
Alexander Schleider, 57, of Lakewood, pleaded guilty to a charge of Conspiracy to Commit Health Care Fraud and a charge of Wire Fraud.
Schleider owned and operated durable medical equipment companies in New Jersey that provided orthotic braces to beneficiaries of Medicare and other federal and private health care benefit programs without regard to medical necessity. He and his conspirators would get prescriptions for the braces through paying kickbacks and bribes to workers in marketing call centers. These workers would then use telemedicine companies to obtain the prescriptions.
One of Schleider’s companies received $322,237 from the Department of Health and Human Services’ Health Resources and Services Administration Provider Relief Fund. He submitted a fraudulent statement to the government that his company provided diagnoses, testing, and care in reference to COVID-19. However, this information was false. The money was used to buy such things as real estate and vehicles.
The charge of Conspiracy to Commit Health Care Fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. The charge of Wire Fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. Sentencing is scheduled for Nov. 8, 2023.
U.S. Attorney Philip Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Naomi Gruchacz; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to the guilty plea.
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