A Connecticut man has been sentenced to 30 months in prison for his involvement in a fraudulent health care scheme that cost federal programs over $7.8 million. Jesse Foote, 60, from Fairfield, received his sentence on Wednesday in federal court in Newark, New Jersey, according to the U.S. Attorney’s Office.
Foote had previously pleaded guilty to two counts related to conspiracy charges. These included conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud. The fraudulent activities occurred between December 2017 and March 2021, during which Foote collaborated with various entities, including overseas telemarketing call centers, durable medical equipment (DME) suppliers, telemedicine companies, and doctors.
Authorities described the operation as a “circular scheme of kickbacks and bribes.” Foote controlled a marketing company that acquired patient leads from telemarketing firms based abroad. These leads included information about beneficiaries of Medicare and other health programs, along with pre-written doctors’ orders for DME.
The telemarketing call centers targeted Medicare beneficiaries and others with health coverage, convincing them to accept DME, such as orthotic braces, regardless of their actual medical needs. It is alleged that Foote paid bribes to telemedicine companies, which then funneled kickbacks to doctors to secure orders for DME based on the purchased leads.
The U.S. Attorney’s Office noted, “The doctors often approved the DME orders without having any contact with the beneficiary and without making a bona fide assessment that the DME was medically necessary.” Following this, Foote sold the signed doctors’ orders to other parties involved in the kickback arrangements. These orders were ultimately submitted to DME suppliers, including those controlled by Foote, which then processed fraudulent claims for reimbursement from health care benefit programs, including Medicare, TRICARE, and various private insurers.
In total, the scheme resulted in the submission of over $7.8 million in false claims. During the sentencing, Foote was also ordered to serve an additional three years of supervised release following his prison term and to pay restitution amounting to about $7.8 million.
This case highlights ongoing concerns regarding health care fraud and the exploitation of vulnerable populations relying on federal health programs. The U.S. Attorney’s Office continues to prioritize the investigation and prosecution of such fraudulent activities to protect the integrity of health care systems.
