Insurance Fraud NEWS
Med supply firm shutters after TV probe in Georgia
December 03, 2019, Fayetteville, GA
A Fayetteville company accused of shipping unwanted medical supplies to seniors across the country is no longer in business.
Devotion Medical closed one year after a FOX 5 I-Team investigation first revealed complaints about its questionable business practices.
The state of Georgia accused Devotion Medical Supply and a sister company called Durable Medical Supply of failing to make refunds for "fraudulently marketed medical supplies... created actual confusion" as to who sent the products, and violated the law by going after "elder persons and disabled adults."
People like Shelley Williams' father Arkade Spencer. He made a career of building golf courses around the country for Arnold Palmer. He passed away at 81. But in the months before Spencer died his Idaho home was suddenly inundated with durable medical supply deliveries.
"I'm going, this is fraud," Shelley said. "He didn't order it. He doesn't need it." She complained to the Better Business Bureau.
So did Jarred Morgan and his mother Lynn. They live in Vancouver, Washington.
During a Skype interview, they held up the various products delivered and billed to Medicare without their knowledge.
A shoulder immobilizer swing. Silicone gel cups.
"Here's elbow braces," said Jarred.
"No, not elbows," corrected Lynn
"Are these knees? Or ankles?" wondered Jarred. "I don't know."
"Even when they said no, some of the complaints said the items showed up anyway," explained Mike Boynton, vice president for the Better Business Bureau of Metro Atlanta, Athens and NE Georgia.
The Better Business Bureau passed along those complaints to the Georgia Attorney General's office. They launched an investigation into the two companies and their owner Simon Orobor.
Without admitting wrongdoing, Orobor closed both companies and agreed to no longer own any future entity that deals with durable medical products. "Orobor may only work in the (durable medical products) industry while under the supervision of another as an employee, agent or consultant," read the agreement.
He also has to pay a $30,000 penalty to the state of Georgia.
Not enough, said Jarred Morgan, one of the original people to complain.
"This is simply a cost-of-doing-business punishment," he argued. "And it just sends the message if you get caught better make sure you have $30,000 set aside."
Federal investigators are targeting the third-party companies that use deception to collect leads for durable medical product sales. Part of the agreement requires Orobor to "provide evidence and assistance" for contracts "with any third party marketing companies."
Source: FOX 5 Atlanta