Orthotic Brace Suppliers Convicted in Illegal Kickback Scheme

May 17, 2022, 2:12 PM UTC

A Dallas federal jury convicted the owners and operators of four orthotic brace suppliers for a $6.5 million illegal kickback scheme, the Department of Justice said Monday.

Each defendant faces a total of up to 55 years in prison. They are scheduled to be sentenced on Sept. 7.

The Strouds and Griffin billed around $12.5 million in Medicare claims for unnecessary braces based on orders received in exchange for illegal kickbacks, which the defendants concealed by characterizing them as marketing expenses, the DOJ said.

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