Tyler, Texas Medical Supply Owner Guilty of Health Care Fraud

TYLER, TX—A 51-year-old Tyler man has pleaded guilty to federal health care fraud charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Nicodemus Udofia pleaded guilty on May 31, 2011, to health care fraud and illegal remunerations charges before U.S. Magistrate Judge Judith K. Guthrie. According to information presented in court, from 2006 to 2008, Udofia, the owner of a medical equipment business in Tyler, submitted claims to Medicare and Medicaid for medical equipment and supplies which were not provided to beneficiaries. As a result of these claims, Udofia unlawfully obtained more than $50,000 from Medicare and Medicaid. Udofia also offered to pay illegal remunerations, or cash kickbacks, in exchange for patient information that he could use to submit claims to Medicare and Medicaid. Udofia was indicted by a federal grand jury on June 3, 2010.

Udofia faces up to 10 years in federal prison at sentencing. A sentencing date has not been set.

This case was investigated by the Texas Office of the Attorney General - Medicaid Fraud Control Unit (OAG-MFCU), the FBI, and the U.S. Department of Health and Human Services - Office of the Inspector General (HHS-OIG). This case is being prosecuted by Special Assistant U.S. Attorney Nathaniel C. Kummerfeld.