A man wanted in Florida on fraud and conspiracy charges was arrested in St. Thomas on Wednesday.
Chad Monroe stands accused of conspiracy to commit healthcare fraud and mail fraud, soliciting and receiving healthcare kickbacks, mail fraud, wire fraud, and conspiracy to defraud the United States.
The charges stem from an alleged scheme whereby Monroe and several co-conspirators submitted fake claims to Medicare and TRICARE for medical devices and genetic testing.
A grand jury indictment alleges that Monroe and others created multiple companies while deliberately hiding Monroe’s involvement, managerial control, and ownership interest from federal agencies.
Through these companies, Monroe and his co-conspirators allegedly offered kickbacks and bribes to telemedicine companies to have them issue doctor’s orders for durable medical equipment – items including orthotics, walkers, canes, etc. The kickbacks, prosecutors say, were concealed via “sham contracts” and “fraudulent invoices” meant to give the veneer of legitimacy to the transfers of funds.
In addition to the fraudulent orders for equipment which were then submitted to Medicare and TRICARE for reimbursement, Monroe also ordered swab kits for genetic testing through similar means, the indictment alleges.
In total, Monroe and others are said to have submitted over $26.5 million in false claims to Medicare, Medicare Advantage plans, and TRICARE, and received over $11 million in reimbursement. Prosecutors say that they also received at least $15 million in bribes and kickbacks from other conspirators for referrals, swab kits, and orders for genetic testing.
The warrant for Monroe’s arrest was issued on Monday and was received by territorial authorities on Wednesday, the same day of his arrest. He appeared before U.S. Magistrate Alan Teague that day, and the judge ordered him released on a personal surety bond of $4 million, with 10% payable in cash.
Monroe has since been released and will be required to report to the United States District Court in the Middle District of Florida, Tampa Division, when summoned.
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