Co-Owner of North Carolina Durable Medical Equipment Company Sentenced to Prison for Role in Defrauding Medicaid

RALEIGH, N.C. – A Morehead City woman was sentenced today to 30 months in federal prison, followed by three years of supervised release on a charge of Making Material False Statements Relating to Healthcare Matters, in violation of Title 18, United States Code, Section 1035(a)(2). Shelly Phillips Bandy, 41, was also ordered to make restitution of $374,809.92, jointly and severally with her company, A Perfect Fit For You, Inc. (APFFY). Bandy is also liable for a civil judgment of $34,708,945.42 arising from the same conduct.

According to court documents, APFFY was a durable medical equipment provider located in Morehead City, North Carolina. Durable medical equipment includes items such as powered wheelchairs, orthotic braces, diabetic shoes, powered air flotation beds, osteogenesis stimulators, pneumatic compressors, etc. Between March 2015 and November 2016, one or more employees of APFFY submitted fraudulent billings claims to Medicaid for providing durable medical equipment to Medicaid recipients. These fraudulent claims contained the personal identifying information of Medicaid recipients who had never ordered nor received any durable medical equipment from APFFY. In fact, some of the patients had been deceased years before the false claims were even submitted. This scheme resulted in an estimated loss to Medicaid of approximately $10,069,361.35.

Source: Co-Owner of North Carolina Durable Medical Equipment Company Sentenced to Prison for Role in Defrauding Medicaid / Department of Justice Eastern District of North Carolina

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