Florida DME operators sentenced in $34.8 million brace fraud scheme
Oct 11, 2026 edition · GC-2026-0027 · Published 2026-10-11 · Version 4 · Final
Two Florida DME operators received prison sentences after using kickbacks and fraudulent orders to bill Medicare $34.8 million for unnecessary braces. They shifted billing among seven companies to evade payment suspensions. The billing figure is not an imposed fine.
What happened
DOJ’s September 4 announcement reports that Kenneth Charles Kessler III received a 33-month prison sentence and Michael Andrew Gomez received 24 months for their roles in an orthotic-brace fraud scheme. Both had pleaded guilty in May to conspiracy to commit healthcare fraud. The $34.8 million figure describes the scheme’s Medicare billing, not an imposed fine or a stated amount of restitution.
According to the court documents described in the release, the men operated seven Florida DME companies and paid kickbacks for fraudulent signed doctors’ orders. Braces went to beneficiaries who neither requested nor needed them. Billing shifted between the companies to evade Medicare payment suspensions. The separate companies therefore formed part of the scheme, making supplier relationships and order authenticity central control issues. DOJ reported that Kessler profited more than $1.4 million and Gomez more than $2.3 million, figures distinct from total scheme billing.
Scope and timing
- Authority status
- Final
- Applicability
- Operationally relevant
- Audience
- Health systems, Provider networks
- Jurisdiction
- Federal
Why it matters
Referral-payment controls and related-entity monitoring need to operate across supplier identities.
Recommended action
Review DME referral sources, order authenticity, patient receipt and relationships among suppliers when assessing fraud alerts.
Case details
- agencies
- DOJ
- entities
- Kenneth Charles Kessler III, Michael Andrew Gomez
- action Type
- Criminal resolution
- event Date
- 2026-09-04
- alleged Conduct
- Medicare billing for unnecessary braces using kickbacks and fraudulent orders; billing shifted between supplier entities.
- resolution
- Kessler received 33 months in prison and Gomez 24 months following guilty pleas. The $34.8 million figure describes scheme billing, not a fine or confirmed restitution award.
Operational lessons
- Validate referrals and orders independently.
- Monitor related supplier entities and payment suspension evasion.
Sources
- Florida DME fraud sentencing announcementOfficial · U.S. Department of Justice · 2026-09-04 · Source review 2026-09-06
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