Montco man pleads guilty in bone stimulator fraud


A 42-year-old North Wales, Montgomery County, man pleaded guilty today in federal court to submitting $250,000 in fraudulent claims for bone stimulators that failed to meet Medicare standards.

Brian Racey was the territory manager of Orthofix, Inc., when he carried out the alleged health care fraud from 2004 until March 2008, according to a statement issued by the U.S. Attorney’s office in Philadelphia.

A device Racey sold was intended to help patients with bone fractures that didn’t heal properly. Medicare has specific guidelines for treatments that qualify for reimbursement, and Racey allegedly altered medical records to make it seem that patients’ prescriptions met the guidelines.

He then submitted fraudulent claims to Medicare to pay for the devices, the statement said.

Racey will be sentenced on February 6, 2013 by U.S. District Court Judge Timothy J. Savage. Racey faces a maximum possible sentence of ten years imprisonment and a $250,000 fine, as well as restitution and forfeiture.

The case was investigated by numerous federal agencies and is being prosecuted by Assistant U.S. Attorney Mary E. Crawley.