August 8, 2025 | JacobiJournal.com — The Department of Justice has filed a civil forfeiture complaint to recover nearly $11 million in alleged proceeds from durable medical equipment (DME) fraud involving two Miami-based clinics. Authorities claim that Vida Med Center LLC and Med-Union Medical Center fraudulently billed Medicare for over $33 million in medically unnecessary DME claims between 2020 and 2022.
According to the DOJ, the clinics operated a kickback-driven scheme in which patients were prescribed braces and orthotic devices that were not medically necessary and often never delivered. These services were submitted as reimbursable to Medicare using falsified documentation and physician approvals.
Civil Forfeiture Sought in DME Fraud Scheme
Federal investigators tracked the fraudulent proceeds through multiple financial accounts and shell entities, allegedly used to obscure the origin of the funds. The civil forfeiture action, filed in the Southern District of Florida, aims to recover approximately $10.9 million in assets, including luxury vehicles and real estate tied to the scheme.
This case is part of a broader initiative by the DOJ and the Medicare Fraud Strike Force to curb fraudulent billing in the durable medical equipment sector. Authorities say DME fraud schemes frequently exploit vulnerable Medicare beneficiaries and drive up public healthcare costs.
Pattern of Abuse in DME Billing
Both clinics have come under scrutiny for their roles in a growing pattern of DME fraud forfeiture actions emerging nationwide. The use of deceptive marketing, forged prescriptions, and aggressive billing tactics has led to increased oversight of DME suppliers and prescribing physicians.
The DOJ emphasized that civil forfeiture serves as a powerful tool to disrupt financial incentives behind Medicare fraud without waiting for a criminal conviction.
What’s Next?
The civil action does not require criminal charges to proceed but may lead to future indictments if investigators uncover further evidence of conspiracy or wire fraud. Meanwhile, regulators are urging healthcare providers to tighten compliance protocols and ensure documentation aligns with Medicare requirements.
The DOJ’s pursuit of assets in this case signals renewed focus on financial recovery alongside traditional enforcement methods.
For more on healthcare fraud enforcement, visit the U.S. Department of Justice Health Care Fraud Unit.
FAQs: What to Know About DME Fraud Forfeiture
What is DME fraud forfeiture?
DME fraud forfeiture refers to the government’s civil action to seize assets gained through fraudulent durable medical equipment billing, even without a criminal conviction.
How much was billed in the Miami DME fraud case?
The two clinics allegedly billed Medicare over $33 million in fraudulent DME claims, prompting a DOJ effort to recover $11 million in illicit proceeds.
Why does the DOJ use civil forfeiture in healthcare fraud cases?
Civil forfeiture allows the DOJ to quickly seize assets tied to fraud without awaiting a criminal trial, preserving funds for potential restitution and disrupting ongoing schemes.
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