Kansas Software CEO Sentenced to 19 Years for Telemedicine Fraud Scheme

A 43-year-old Kansas executive was sentenced to 19 years in federal prison for operating an internet platform that generated false doctors’ orders and prescriptions. According to the U.S. Department of Justice, the scheme defrauded Medicare and other federal health care benefit programs out of more than $1 billion. The defendant was convicted following a 23-day jury trial that concluded in April 2026.

The convicted executive owned and operated a platform that targeted hundreds of thousands of elderly and disabled Americans. Prosecutors presented evidence showing that the operation used international telemarketing and foreign call centers to lure beneficiaries into accepting medically unnecessary orthotic braces. Co-conspirators then arranged for purported telemedicine doctors to sign bogus prescription orders without any meaningful medical interaction, and sometimes with no interaction at all.

How the Telemedicine Scheme Operated

Court documents and trial evidence revealed that the operation involved a complex network of pharmacies, durable medical equipment suppliers, and marketers. The software platform connected these entities with telemedicine companies willing to accept illegal kickbacks and bribes. In exchange, these companies signed fraudulent doctors’ orders for durable medical equipment.

To keep the operation hidden from oversight, the participants used sham contracts and manipulated the paperwork to remove references to telemedicine, helping them avoid Medicare audits. Equipment suppliers and pharmacies billed Medicare and other insurers more than $1 billion, ultimately receiving payouts exceeding $450 million. The scheme resulted in Medicare being fraudulently billed for orthotic braces for more than 346,000 beneficiaries.

Convictions and Criminal Penalties

In April 2026, a federal jury found the Kansas CEO guilty of conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive kickbacks, and conspiracy to defraud the United States and make false statements. Aside from his 19-year prison sentence, his restitution and forfeiture obligations will be determined by the court at a later date. A co-defendant involved in the scheme received a 15-year prison sentence in December 2025.

Multiple federal agencies investigated the case, including the U.S. Department of Health and Human Services Office of Inspector General, the FBI, the Department of Veterans Affairs Office of Inspector General, and the Defense Criminal Investigative Service. The prosecution was handled by the Justice Department’s Fraud Division.

What This Means for Beneficiaries and Consumers

Large-scale health care fraud schemes frequently target vulnerable populations, including elderly and disabled individuals, by offering unrequested medical equipment like orthotic braces through aggressive telemarketing calls. Ordinary citizens should carefully review their Medicare statements and explanations of benefits to check for medical equipment or doctor visits they never received. Anyone who notices suspicious billing or receives unsolicited medical gear should report it to federal health authorities or law enforcement.

Navigating complex legal matters or dealing with federal benefit audits can be difficult, and talking to a qualified attorney may help if you or a family member has questions regarding health care billing discrepancies or federal program notices.

This article is general information based on U.S. Department of Justice and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 15, 2026.