Two South Florida men have been handed prison sentences after orchestrating a massive healthcare fraud scheme that siphoned nearly 35 million dollars from Medicare. Kenneth Charles Kessler III of Miami and Michael Andrew Gomez of Miramar both pleaded guilty to conspiracy charges following an investigation by the U.S. Department of Justice into their operation involving unnecessary medical equipment.
The pair ran seven different durable medical equipment supply companies across Florida, using these businesses as fronts to submit millions of dollars in false claims. According to court documents, the duo focused on billing for thousands of orthotic braces shipped to Medicare beneficiaries who neither requested nor needed the devices. To make the shipments appear legitimate, Kessler and Gomez paid bribes and illegal kickbacks to obtain fraudulent signatures on doctors’ orders.
Federal investigators found that the two men intentionally rotated their billing between various companies to avoid detection and prevent payment suspensions from government regulators. While the total amount billed reached 34.8 million dollars, the personal profits were substantial, with Kessler pocketing over 1.4 million dollars and Gomez taking home more than 2.3 million dollars from the scam.
Following their guilty pleas in May, a judge sentenced Kessler to 33 months in prison and Gomez to 24 months. In a statement regarding the sentencing, Assistant Attorney General Colin M. McDonald emphasized that stealing from American taxpayers is a crime that carries severe consequences, noting that these prison terms serve as a warning to others attempting to defraud federal healthcare programs.