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Owner of Durable Medical Equipment Companies Admits Role in $16 Million Dollar Kickback Scheme

Publication date: 
Friday, November 13, 2020

NEWARK, N.J. – The owner of a group of related durable medical equipment (DME) companies today admitted his role in a conspiracy to pay kickbacks in exchange for durable medical equipment, Attorney for the United States Rachael A. Honig announced.

Albert Davydov, 28, of Rego Park, New York, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with conspiring to violate the Anti-Kickback statute.

According to documents filed in this case and statements made in court:

Davydov, the owner of nine DME companies, participated in a scheme to pay kickbacks in exchange for doctors’ orders for medically unnecessary orthotic braces. Once Davydov and his conspirators received the completed doctor’s orders, they billed Medicare and other federal and private health care benefit programs for the braces. Davydov concealed his ownership of the DME companies by falsely reporting to Medicare that various straw owners owned the companies. 

As part of his plea agreement, Davydov agreed that the improper benefit conferred was over $16 million for the charged conspiracy to violate the federal Anti-Kickback statute. The conspiracy charge to which Davydov pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 25, 2021.

Attorney for the United States Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney J. Stephen Ferketic of the Opioid Abuse Prevention & Enforcement Unit.

Additional Details
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Component
USAO - New Jersey;
OIG
Department of Health and Human Services OIG