Texas man sentenced to 90 months in $59.9 million Medicare brace fraud scheme

A Texas man has been sentenced to 90 months in federal prison for his role in a $59.9 million conspiracy to pay kickbacks and submit claims to Medicare for medically unnecessary orthotic braces, according to the Justice Department.

Patrick Cassells, 65, of Fulshear, Texas, owned and operated three durable medical equipment companies through which he caused more than $59.9 million in false and fraudulent Medicare claims, of which Medicare paid more than $27 million, prosecutors said.

According to court documents, Cassells paid illegal kickbacks to co-conspirators who provided signed doctors’ orders and other paperwork needed to bill Medicare for knee, back, shoulder, and wrist braces. The kickbacks were disguised by referring to the doctors’ orders as “leads” and the services provided as “marketing.” Based on orders issued without doctors examining or treating the patients, Cassells submitted claims falsely representing that the braces were medically necessary.

Cassells also concealed his role in one of the three companies by falsely identifying another individual as the sole owner and manager on a Medicare enrollment application. He used fraud proceeds to purchase personal vehicles and vehicles he intended to export to Nigeria, according to court documents.

Cassells pleaded guilty in June 2024 in the Southern District of Texas to one count of conspiracy to commit health care fraud. In addition to the prison sentence, he was ordered to pay $25,402,614.97 in restitution and forfeiture and to forfeit four vehicles and three Houston-area properties.