May 11, 2007 The Scooter Store
The Scooter Store has agreed to pay $4 Million Dollars, and to give up many millions more in pending claims for reimbursement to Medicare, to settle allegations that it violated the False Claims Act and defrauded the United States.
The settlement involves a lawsuit, brought by one of its former employees, alleging that The Scooter Store sold Medicare and Medicaid recipients expensive power wheelchairs that they did not want or need, or that they could not use.
By representing to physicians that their patients wanted and needed power wheelchairs, The Scooter Store obtained thousands of “Certificates of Medical Necessity” from doctors who did not know about the company’s fraudulent practices.
As part of the settlement, the former employee who filed the suit is to receive $3,228,251.00 as a reward for filing the claims.
See U.S. Dept of Justice Press Release 5/11/07