FBI Raids Georgia Prosthetics Office

FBI agents seized billing receipts, patient records, computer files, and other documents from Preferred Prosthetics & Orthotics Inc., of Brunswick, Georgia, as part of a federal investigation into suspected health care fraud, mail fraud, and conspiracy, according to the Augusta Chronicle newspaper. In an article detailing the June 17 raid, FBI Special Agent Tony Alig stated that Preferred is suspected of fraud and conspiracy to commit fraud estimated to "easily exceed $100,000." Alig added, "It appears the fraud involves Medicare being billed for services that might not have been medically necessary, or that might not have been provided at all."

No charges have been filed, and no arrests have been made in the case, according to Alig. The Georgia Times-Union described the raid as being prompted by a sworn affidavit of the Department of Health and Human Services. It described "fraudulent bills and claims submitted to Medicare by the company for prosthetic and orthotic devices for at least 31 patients in Texas and southeast Georgia."

Preferred Prosthetics & Orthotics Inc. was closed during the raid, but Scottie Stokes, identified as a co-owner since December 2007, and Robert Talley, CP, CFo, Preferred's only licensed prosthetist, were present. According to the Chronicle, both declined to comment.

Special Agent David Graupner submitted an affidavit describing multiple infractions. The Chronicle listed them as billing Medicare for patients who were not seen by Talley, submitting claims for equipment not prescribed by patients' doctors, and billing Medicare for customers of a business owned by Stokes's cousin.

Alig was quoted as estimating that the current phase of the investigation would conclude in July. Then, the case would be presented to a federal grand jury.