A man from Tarpon Springs, Florida, admitted to running a $42 million scam involving Medicare and pandemic loans. The federal government seized his 47-foot yacht and $1 million in cash.
48-year-old Chad Monroe pleaded guilty in federal court this week to conspiracy to commit wire fraud and healthcare fraud. Prosecutors explained how Monroe put together a network of shell companies designed to bill Medicare, TRICARE, and Medicare Advantage plans for millions of dollars of unnecessary medical services and products that were never requested by patients.
The scam he ran was supported by three medical supply companies he helped start. Since his name on the paperwork would raise suspicions, he told his business partners to falsify information on the enrollment forms to hide his ownership of the companies.
The shell companies billed federal healthcare programs over $26 million for ankle, wrist, knee, and back braces that were never needed. Monroe paid unlawful kickbacks to fake telemedicine companies to obtain doctors’ orders on the paperwork, making it appear credible.
He ran a similar scam involving cancer genetic testing through another company he controlled, Health and Life Networking LLC. He would sell the doctors’ orders to partnering labs and received over $15 million in kickbacks.
During the pandemic, Monroe took advantage of COVID-19 relief funds too. According to court records, he directed a co-conspirator to submit a fraudulent loan application for the Paycheck Protection Program for over $30,000. He also lied about who the real owner of 1st Choice Medical Supply LLC was.
The money he stole was used to support a luxury lifestyle. In addition to his $600,000 yacht, Monroe used the money to buy a Cadillac Escalade and other high-end vehicles.
Sentencing has not yet been scheduled. He is looking at 10 years in federal prison for the charge of conspiracy to commit healthcare fraud. He is also facing a maximum sentence of 30 years for wire fraud. A federal judge will look at the U.S. Sentencing Guidelines, as well as other legal concerns, before making the final decision.
The Justice Department’s National Fraud Enforcement Division is in charge of prosecuting this case. This unit was started back in April to support President Trump’s Task Force to Eliminate Fraud.
A 47-foot yacht named “The Rogue Shark” and more than $1 million in cash now belong to the federal government after a Tarpon Springs man admitted to running a massive $42 million health care and pandemic loan scam.
Chad Monroe, 48, stood in federal court today and pleaded guilty to conspiracy to commit health care fraud and wire fraud. Prosecutors laid out how Monroe built a network of shell companies to bill Medicare, Medicare Advantage plans, and TRICARE for millions of dollars in medical braces and cancer genetic tests that patients never asked for and didn’t need.
The operation relied on three medical supply companies Monroe helped launch: Maksix Medical Products Inc., Orthotech Atlanta LLC, and 1st Choice Medical Supply LLC. Knowing his name on the paperwork would raise red flags, Monroe ordered his partners to lie on Medicare enrollment forms to disguise his ownership.
Ad block users: Some site features may not work correctly while an ad blocker is enabled, because they break scripts and content this website depends on. If you can’t see comments below, for example, please disable your ad blocker.
