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28 Year-Old DME Company Owner Guilty Of $16 Million Kickback Scheme

At the age of 28, most professionals are in the midst of getting well adjusted to their careers. Still young enough to vividly remember what it was like to be an industry rookie, a not-quite-thirtysomething-yet generally has a lot to look forward to. It’s great to be ambitious, of course. However, 28 year-old, Albert Davydov of Rego Park, New York took his ambitions just a little too far.

Davydov has admitted to playing a role in a $16 million kickback scheme.

As reported by the District of New Jersey branch of the United States Department of Justice last week, Davydov has admitted to playing a role in a $16 million kickback scheme. According to the DoJ report, Davydov owns nine durable medical equipment (DME) companies. As part of his scheme, he paid kickbacks to doctors who ordered medically unnecessary orthotic braces. Davydov and his co-conspirators would receive the completed doctor’s orders for the braces and then bill Medicare and other federal and private health care benefit programs.

Davydov concealed his ownership of the DME companies. He falsely reported to Medicare that various straw owners owned the companies. Last week Friday, Davydov entered into a plea agreement where he conceded that he improperly benefitted from his scam to the tune of $16 million. His actions violated the federal Anti-Kickback statute.

Davydov pleaded guilty to the conspiracy charge which carries a maximum penalty of five years in prison. He must also pay a fine of $250,000, or twice the gross grain or loss from the offense, whichever is greatest. Davydov will be sentenced on March 25, 2021. He, however, is certainly not the only perpetrator of a kickback scheme to be brought to justice this month.

Medtronic USA will pay $8.1 million to resolve allegations it violated the False Claims Act.

On, Clare Goldsberry reports that Minnesota-based medical device manufacturer, Medtronic USA is in some hot water of its own. The company will pay $8.1 million to resolve allegations of violating the False Claims Act. Medtronic USA is alleged to have paid kickbacks to a South Dakota neurosurgeon named Wilson Asfora.

Citing a DoJ report, Goldsberry reveals that the company will also pay an additional $1.11 million to resolve allegations that it violated the Open Payments Program. Medtronic USA is also alleged to have failed to accurately report payments to the neurosurgeon to the Centers for Medicare & Medicaid Services (CMS).

Medtronic conspired with Asfora to pull off its scheme.

According to the settlement that was reached on October 29th, reports Goldsberry, Medtronic agreed to Asfora’s request to pay for social events at his restaurant, Carnaval Brazilian Grill. Medtronic allegedly made payments to Asfora to induce him to use Medtronic’s SynchroMed II intrathecal infusion pumps. They are implantable devices used to deliver medication to patients.

“The United States alleged that Medtronic’s sponsored events at Asfora’s restaurant were social gatherings for which Asfora selected and invited his social acquaintances, business partners, favored colleagues, and potential and existing referral sources, while Medtronic paid for their meals and drinks,” writes Goldsberry, “Over a nine-year period, Medtronic allegedly paid for more than 100 events at Asfora’s restaurant.”

Are you an attorney who is currently trying a health care fraud case?

Please don’t hesitate to contact Allegiant Experts to find out how our clinical expertise may help your case. Give us a call at 407-217-5831 or email us at

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