Reginald Fullwood Jr., 59, of Madison, has been sentenced to more than three years in federal prison for conspiracy to defraud the United States, according to the United States Attorney’s Office for the Southern District of Mississippi. On August 28, 2024, Fullwood pleaded guilty to conspiracy to defraud the United States. According to the United States Attorney’s Office, Fullwood was involved in a scheme in which he paid an unlawful payment to a marketer in exchange for completing doctors’ orders for durable medical equipment (DME).
According to the US Attorney’s office, this enabled his company, Jackson Medical Supply, to charge Medicare and Medicare Advantage plans for orthotic braces that were medically unnecessary or ineligible for coverage.ย Notably, Medicare covers DME if prescribed for home use by a Medicare-enrolled doctor, according to Medicare.gov. According to the US Attorney’s Office, after Medicare began investigating Jackson Medical Supply for fraudulent billing practices, Fullwood formed a second organization, registered it under the name of a nominee owner, in order to disguise his involvement and continue his scheme.
The office alleged that Fullwood continued to pay illegal kickbacks to the marketer in exchange for doctor’s orders. These directives enabled the newly formed organization to file fraudulent claims with Medicare and Medicare Advantage for orthotic braces that were medically unnecessary or ineligible for reimbursement. Fullwood ultimately billed Medicare and Medicare Advantage for approximately $12.4 million in compensation for DME that did not fulfill medical necessity or eligibility rules, according to the department. According to the United States Attorney’s Office, the entities got about $6,448,092.61 in reimbursements.
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