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Mail-Order Diabetic Supply Company and Its Owners Resolve Allegations of Civil and Criminal Fraud

New Orleans, Louisiana - The owners of Kansas-based Global Medical Direct, LLC and Global Medical Inc., Robert Shea and Mark Franz, have agreed to pay $7 million to resolve allegations against them in connection with a scheme to submit false claims to the federal Medicare and Tricare healthcare programs, announced United States Attorney Kenneth Allen Polite, Jr. from the Eastern District of Louisiana along with United States Attorney Barry Grissom, from the District of Kansas. The companies have also agreed to pay to the United States $5 million in proceeds from the sale of all of the companies' assets to settle civil allegations under the False Claims Act. Shea and Franz will also receive twenty-year exclusions from participation in any federal healthcare program as part of the settlement.

Read more on www.justice.gov

Action Details

  • Date:October 22, 2013
  • Agency:U.S. Attorneys
  • Enforcement Types:
    • Criminal and Civil Actions