Orthotic Brace Suppliers Lose Appeal Over Kickback Convictions

A Texas couple that operated orthotic brace suppliers failed to reverse their convictions over a $6.5 million illegal kickback scheme.

The US Court of Appeals for the Fifth Circuit in a Tuesday unsigned opinion upheld the 2022 convictions against Bruce and Bobbi Stroud for violating the Medicare Anti-Kickback Statute. Over a two-year period the Strouds paid more than $3 million in kickbacks to marketing companies that referred Medicare beneficiaries to the Strouds’ companies, resulting in more than $12 million in Medicare reimbursement claims for filling orders.

• The Strouds on appeal challenged the evidence against them and argued the statute only ...