The FBI has raided the medical supply company Med-Care Diabetes & Medical Supplies Inc.--a firm that garnered national attention because of ties to an infamous fraudster who helped inspire the blockbuster movie "The Wolf of Wall Street."
Both the FBI and the Office of Inspector General confirmed they were involved in "law enforcement activity" but declined to provide any further information about the raid into the Boca Raton-based facility, according to the Sun-Sentinel. Records show Med-Care has ties to Daniel Porush, infamous for his stock-trading business with Jordan Belfort, who was portrayed by Leonardo DiCaprio in "The Wolf of Wall Street." (Porush inspired the character Donnie Azoff, played by Jonah Hill.)
Porush previously served federal prison time for stock fraud. Records show that Med-Care's vice president of Med-Care is Porush's wife, Lisa. Daniel Porush also owns a company, Christian Diabetic Network, in the same office as Med-Care, according to the Sun-Sentinel.
A 2013 review by the U.S. Senate Subcommittee on Financial and Contracting Oversight found that the company's sales tactics were "aggressive." Meanwhile, a Center for Medicare & Medicaid Services audit found two-thirds of a sampling of 590 Medicare claims to be improper, resulting in more than $146,000 in overpayment--but CMS auditors told the subcommittee that the true overpayment amount could be "in the millions."
Med-Care also faces a whistleblower lawsuit dating back to 2010 brought by Tiffany Bumbury, a former telemarketer for the company. Bubury accused the company of illegal marketing techniques and billing for unnecessary medical devices. Med-Care's attorney, Justin Weddle, said the company is cooperating with federal investigators and has "nothing to hide," according to the newspaper.
The justice system has seen a steady stream of durable medical equipment (DME) fraud cases in recent years, including power wheelchair abuses, FierceHealthPayer: AntiFraud previously reported.
- read the Sun-Sentinel article