Woman sentenced to prison, to pay $595K for role in $4.6M DME kickback scheme

Written by Laura Dyrda | September 03, 2019 | Print  |

A Tennessee woman was sentenced to 42 months in prison for participating in a $4.6 million kickback scheme related to illegal payments in exchange for Medicare referrals for durable medical equipment.

 

Brenda Montgomery pleaded guilty in federal court to seven counts of violating the anti-kickback statute in June. She admitted to paying former Comprehensive Pain Specialist CEO John Davis to arrange Medicare referrals from providers he oversaw at the clinic in exchange for 60 percent of the Medicare proceeds. Both Ms. Montgomery and Mr. Davis attempted to hide their illegal activity by filing false tax documents.

According to the Department of Justice, Ms. Montgomery received up to $2.9 million in fraudulent Medicare reimbursement and admitted to paying more than $770,000 in kickbacks.

In addition to her prison sentence, handed down by U.S. District Judge of Middle Tennessee William Campbell Jr., Ms. Montgomery must forfeit $595,676.80.

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