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Arizona telehealth company owners plead guilty in $64M scheme

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The owners of a national telehealth company pleaded guilty this week to charges of conspiracy to violate the federal Anti-Kickback Statute and to commit healthcare fraud.

According to a statement released by the U.S. Attorney’s Office of the District of New Jersey, Stephen Luke and David Laughlin owned and operated a Phoenix-based company called RediDoc.

“From September 2017 through December 2019, Luke and Laughlin conspired together and with others to unlawfully enrich themselves by submitting and causing to be submitted false and fraudulent claims to federal healthcare benefit programs,” the officials alleged. “They did so through a circular scheme of kickbacks and bribes paid to doctors and solicited from marketing companies, pharmacies, and providers of durable medical equipment.”

WHY IT MATTERS

As outlined in court documents , marketers identified Medicare and TRICARE beneficiaries to target for expensive medications – such as pain creams, scar creams, eczema creams and migraine medication – and durable medical equipment, including wrist, shoulder, knee and ankle braces.

The marketers then allegedly called beneficiaries to persuade them to agree to try the drugs or equipment, even when the need for them was unclear and not discussed with their doctor, according to the court documents.Marketers then allegedly transmitted the […]

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