NEWARK, N.J. – Eric Karlewicz, 44, of Chestnut Ridge, New York, pleaded guilty to his role in a substantial health care fraud and kickback scheme, causing over $127 million in false and fraudulent claims to health care benefit programs.
The owner of a marketing company, Karlewicz admitted to conspiracies to commit health care fraud and to pay and receive illegal kickbacks in Newark federal court before U.S. District Judge Esther Salas.
From June 2017 through May 2019, Karlewicz and his conspirators targeted Medicare and TRICARE beneficiaries for durable medical equipment (DME), often pressuring them to accept back, shoulder, and knee braces, regardless of medical necessity. The scheme involved a network of DME companies, telemedicine companies, and doctors, all submitting false claims based on a cycle of kickbacks and bribes.
Karlewicz and his company paid kickbacks to telemedicine companies, which subsequently paid doctors to obtain orders for the DME. The doctors, often without patient interaction, signed orders regardless of medical necessity. Karlewicz then directed the orders to DME suppliers, receiving a portion of the proceeds from the claims submitted to health care benefit programs. The company received over $63 million from DME suppliers for the referrals.
Karlewicz utilized the scheme’s proceeds to purchase luxury vehicles, including a Ferrari, Lamborghini, Bentley, and BMW.