A former Kentucky resident has been sentenced to federal prison for his involvement in a healthcare fraud conspiracy. Pedro Reyes, aged 54 and previously from Elizabethtown, Kentucky, was sentenced to two years and nine months in prison followed by two years of supervised release. The sentence is related to a scheme where Reyes fraudulently billed Medicare for unnecessary durable medical equipment.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky announced the sentencing alongside Special Agent in Charge Kelly J. Blackmon of the Department of Health and Human Services, Office of Inspector General (HHS-OIG).
According to court documents, Reyes used multiple companies in Kentucky to bill Medicare for orthopedic equipment such as back, knee, and shoulder braces that were not needed or prescribed by medical providers.
"I commend the tenacious work of the HHS-OIG and the prosecution team in this matter," stated U.S. Attorney Bennett. "Let this case serve as notice to those who plan to cheat the system. You will be identified, aggressively prosecuted, spend time in federal prison, and, in the end, pay back your ill-gotten gains."
Special Agent Blackmon remarked on the severity of Reyes' actions: "The defendant’s exploitation of the Medicare program and its enrollees for unlawful financial gain constitutes a serious breach of trust and a misappropriation of resources for the public."
Reyes has been ordered to pay restitution totaling $6,004,916. There is no parole available within the federal system.
The investigation was conducted by HHS-OIG with Assistant U.S. Attorney Christopher Tieke prosecuting the case alongside healthcare fraud investigator Bob Masterson.
