A federal jury in New Orleans on Saturday found the owner of a local health care company guilty on 18 counts from a 2013 indictment accusing her and another woman in a $3.2 million Medicare fraud scheme.
Tracy Richardson Brown was found guilty on all counts following a five-day trial. Brown, 46, was convicted on a charge of conspiracy to commit health care fraud, nine counts of fraud and eight counts related to illegal kickbacks.
Brown, who ran a company called Psalms 23 DME, was accused of billing Medicare for wheelchairs and other gear for beneficiaries who didn’t need the equipment or never received it. Brown paid recruiters for names and Medicare numbers around the New Orleans area.
She also engaged in “upcoding,” billing Medicare for high-cost back and knee braces when the versions she provided were cheaper, according to U.S. Attorney Kenneth Polite’s office.
Medicare paid nearly $2 million on the claims filed by Brown’s company.
A co-defendant, Sandra Parkman Thompson, pleaded guilty in 2013 in another health care fraud case in federal court in Baton Rouge, agreeing to an 18-month prison sentence. She has yet to be tried in the Psalms 23 case, arguing that her prosecution amounts to double jeopardy.
Brown is scheduled to be sentenced Aug. 10 by U.S. District Judge Stanwood Duval.
The FBI and the U.S. Department of Health and Human Services investigated the case. Assistant U.S. Attorney Patrice Sullivan and trial attorney William Kanellis led the federal prosecution.