A Baton Rouge businessman must report to federal prison Aug. 1 to begin a five-year sentence for his admitted participation in a Medicare-fraud conspiracy that cost taxpayers at least $878,280.
U.S. District Judge James J. Brady issued the order Friday in the case of Samuel B. Johnson, 48.
In addition to the five-year prison term, Brady sentenced Johnson to two years of post-prison supervision by federal investigators.
The judge ordered Johnson to pay restitution of $878,280 to the federal government. Johnson also must forfeit $928,280 in property purchased with money defrauded from Medicare, Brady ruled.
In return for Johnson’s guilty plea, Assistant U.S. Attorney Alan A. Stevens asked Brady to dismiss additional charges of health-care fraud and money laundering.
Johnson and co-defendant Thompson W. Chinwoh, 57, of Baton Rouge, admitted swindling the nation’s health insurer for the elderly and disabled through false billings of their Medical Supplies of Baton Rouge Inc.
Chinwoh’s sentencing was postponed until July 18.
Johnson and Chinwoh admitted that they caused Medicare to be billed for power wheelchairs and other medical equipment that either had not been prescribed by physicians or was never delivered to patients.
Their indictment alleged that MSBR falsely billed Medicare for more than $2.6 million between November 2005 and September 2008.
Johnson funneled at least $50,000 of MSBR’s Medicare receipts into his used car dealership and repair shop, according to an affidavit of Special Agent Jeffrey M. Richards of the U.S. Department of Health and Human Services’ Office of Inspector General.
Johnson’s dealership is Medallion Imports, Richards said in his affidavit. Richards added: “Johnson is Medallion’s registered agent, president, vice president, secretary, treasurer and director.”