Two South Florida men were convicted and sentenced in a scheme that used aggressive telemarketing and illegal kickbacks to push medically unnecessary braces onto Medicare Advantage beneficiaries, generating roughly $35 million in false claims and more than $19 million in payments.
Federal courts handed down hefty prison terms after a trial exposed a sprawling operation centered on durable medical equipment fraud. Michael Kochen, 42, of Aventura, Florida, received 204 months, and Sandro Herek, 56, of Coral Springs, Florida, was sentenced to 92 months for roles in the scheme. Prosecutors proved their guilt on multiple counts including conspiracy, health care fraud, and kickback offenses.
The scheme resulted in the submission of about $35 million in false and fraudulent claims to Medicare Advantage plans and over $19 million in payments on those claims. The indictment and verdict detailed how defendants funneled prescriptions and orders for back, knee, shoulder, and ankle braces that beneficiaries did not need. Evidence at trial showed a pattern of deceptive marketing, falsified paperwork, and systematic billing.
“These defendants targeted elderly Medicare Advantage beneficiaries with relentless telemarketing and unnecessary medical equipment, generating approximately $35 million in fraudulent claims and more than $19 million in payments,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “Michael Kochen and Sandro Herek treated vulnerable seniors as profit centers and federal health care programs as personal bank accounts. These substantial prison sentences hold them accountable, and we will pursue the forfeiture and recovery of their ill-gotten gains.”
Court evidence described recurring calls that pressured older adults to accept braces, even after initial refusals, and showed call centers repeatedly contacting the same beneficiaries. Herek managed overseas call centers, including operations in Egypt and other foreign jurisdictions, where representatives used high-pressure scripts to sign up Medicare Advantage enrollees. Kochen owned dozens of companies that supplied the braces and arranged payments and referrals to keep the operation running.
Recordings and documents presented at trial showed physicians often signed standardized authorizations without meaningful, individualized medical evaluations. In many cases, doctors never spoke directly with beneficiaries, and when conversations happened they lasted only minutes and lacked clinical assessment. Prosecutors demonstrated that telemedicine companies and other intermediaries were paid kickbacks to secure prescription orders used to justify billing.
“These sentencings underscore the commitment of HHS-OIG to protecting the integrity of federal health care programs as well as the health and well-being of the many Americans who rely on those programs,” said Special Agent in Charge Isaac M. Bledsoe of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Exploiting Medicare Advantage beneficiaries through deceptive telemarketing and fraudulent claims is not only illegal, it is reprehensible. These outcomes send a clear message: those who engage in health care fraud will be held accountable.”
Investigators say the operation used a complex web of shell companies, telemedicine vendors, and call centers to hide kickbacks and move ill-gotten funds. Kochen allegedly paid illegal kickbacks to Herek and others to recruit beneficiaries, then leveraged purchased medical orders to submit claims. That structure allowed the defendants to scale up billing and conceal who was benefiting from the scheme.
Federal prosecutors and investigators from multiple agencies coordinated the case, which underscores how cross-agency cooperation targets sophisticated fraud. The announcement named U.S. Attorney Jason A. Reding Quiñones, Acting Special Agent in Charge Isaac Bledsoe of HHS-OIG Miami, and Special Agent in Charge Brett D. Skiles of the FBI Miami Field Office. HHS-OIG Miami and FBI Miami led the investigation, and Assistant U.S. Attorneys Roger Cruz, David Turken, and Robert F. Moore prosecuted the matter, with asset forfeiture handled by Assistant U.S. Attorney Sandra Demici.
The Justice Department has recently reorganized certain efforts to sharpen focus on fraud, creating new structures to investigate large-scale schemes against federal benefit programs. That initiative aligns with a broader push to reduce fraud, waste, and abuse across government programs and supports law enforcement priorities to recover losses and deter repeat offenders. The department’s actions in this case are presented as part of that wider enforcement agenda.
Regulators and law enforcement encourage beneficiaries to review their benefit statements and be alert for unexpected equipment deliveries or unexplained claims. Anyone who suspects suspicious or unauthorized claims in their Medicare records should contact the appropriate oversight offices and report concerns so investigators can follow up. Holding bad actors to account depends on beneficiaries, providers, and agencies working together to spot and stop fraud.
