Listen to this article

Last week in Trenton federal court, Alexander Schleider of Lakewood, admitted his role in a durable medical equipment kickback scheme as well as wire fraud in connection with pandemic relief money.

Schleider, 57, owned and operated durable medical equipment (DME) companies in the state that provided orthotic braces to beneficiaries of Medicare and other federal and private health care benefit programs. According to prosecutors, Schleider and his conspirators obtained prescriptions for the braces through kickbacks and bribes to individuals operating marketing call centers. Prosecutors say the scheme caused losses to Medicare and other health care benefit programs of $21.7 million.

Before Judge Michael Shipp on June 30, Schleider pleaded guilty to an information charging him with one count of conspiracy to commit health care fraud and one count of wire fraud related to the misuse of COVID-19 funds.

“After one of his DME companies received $322,237 from the Department of Health and Human Services’ Health Resources and Services Administration Provider Relief Fund, Schleider submitted a fraudulent attestation to HRSA in which he claimed that the DME company provided diagnoses, testing, and care for individuals with possible or actual cases of COVID-19 after Jan. 31, 2020,” according to case documents and court statements. “In reality, the DME company had ceased billing for any services in April 2019. The attestation also falsely claimed that the payment would only be used to prevent, prepare for, and respond to coronavirus, and that the payment shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Schleider did not use the funds for those purposes but transferred them into other accounts and subsequently used them to purchase real estate and vehicles, among other things.”

The count of conspiracy to commit health care fraud carries a maximum potential sentence of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. The wire fraud charge is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.

Schleider is scheduled to be sentenced Nov. 8, 2023.

Other cases

• South Jersey business owner sentenced for payroll tax, PPP fraud
• Former Jersey City Board of Ed president admits fraud, embezzlement
• Jersey man admits to role in $12M scheme defrauding Williams-Sonoma