Georgia's Augusta Medical Systems Charged With Submitting False Claims to Medicare

Augusta (Ga.) Medical Systems and its former owner, Julian Osbon, have been charged by federal prosecutors for submitting false and fraudulent claims to Medicare for more than $690,000, according to a news release by U.S. States Attorney Edward J. Tarver.   

The complaint alleges that for a period of more than one year, Augusta Medical billed Medicare for vacuum erection devices during a time in which it was not an authorized Medicare supplier. Accordingly, it was not entitled to receive Medicare reimbursement during this period. Mr. Osbon had quickly closed his former company, opened Augusta Medical and had hoped to obtain the necessary authorizations from Medicare. However, he allegedly disregarded the law and the advice of his own executive team and proceeded to bill Medicare for thousands of erection devices without having a valid billing number.

The complaint was filed under the civil False Claims Act which provides for liability for triple damages and a penalty between $5,500 and $11,000 per claim for anyone who submits or causes the submission of a false or fraudulent claim to the United States.

Read the States Attorney's release on Augusta Medical Systems.

Read other Becker's coverage on Georgia Medicare fraud.

Georgia Radiologist Arraigned on Fraud Charges

Two Georgia Chiropractors Arraigned For Healthcare Fraud

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