Jay Clayton, the United States Attorney for the Southern District of New York, announced that Alan Swiss has been sentenced to 42 months in prison. Swiss was involved in a multimillion-dollar conspiracy to defraud Medicare. He pled guilty on January 22, 2025, before U.S. District Judge John G. Koeltl.
"Swiss defrauded Medicare through creating, purchasing, and selling millions of dollars’ worth of false prescriptions for medical equipment," said U.S. Attorney Jay Clayton. "Fraud of this kind not only wastes taxpayer dollars but also drives up the cost of healthcare for all. Today’s sentencing sends a clear message: individuals who cheat Medicare will face justice."
Court statements and publicly filed documents revealed that from approximately 2016 through April 2019, Swiss operated a call center named Tropical Medical Marketing, Inc., which cold-called Medicare beneficiaries to use their personal and medical information without consent. This information was used to prepare prescriptions for durable medical equipment (DME). Swiss sold these DME prescriptions to co-conspirators who obtained unauthorized signatures or authorizations from health care providers to submit fraudulent claims to Medicare.
From around 2017 through April 2019, Swiss also ran two DME supply companies: Modern Medical Equipment, Inc., primarily billing Medicare directly under Part B; and A&E Medical, Inc., billing private insurance companies under Part C or "Medicare Advantage." To support his unlawful claims to Medicare, Swiss either purchased prescriptions outright or used patient information generated through his call center with unauthorized signatures from health care providers. The two DME supply companies controlled by Swiss submitted claims exceeding $18 million through a billing company operated by co-defendants Erin Foley and Ted Albin—of which nearly $6 million was paid out by Medicare.
In addition to the prison term, Swiss, aged 52 from West Palm Beach County, Florida, received three years of supervised release. He was ordered to forfeit $6,650,929.76 and pay restitution in the same amount to Medicare.
Mr. Clayton commended the investigative work done by the U.S. Department of Health and Human Services – Office of Inspector General.
The case is managed by the Office's Complex Frauds and Cybercrime Unit with Assistant U.S. Attorneys Rushmi Bhaskaran, Jackie Delligatti, Brandon Thompson, and William Kinder leading the prosecution.
