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crime 3w ago

Texas Fugitive Apprehended and Sentenced to Over 12 Years in Prison for $61M Telemarketing Fraud Scheme Targeting Medicare Beneficiaries

Source: US Dept of Justice
🌲Evergreen Wire Summary

# Texas Man Sentenced to 12+ Years for $61.5M Medicare Fraud Scheme

Robert "Bobby" Leon Smith III, 50, of Archer City, Texas, was sentenced to 150 months in prison for orchestrating a $61.5 million health care fraud conspiracy targeting Medicare beneficiaries. Smith operated seven durable medical equipment supply companies across Florida, Texas, and Maryland, submitting millions in false Medicare claims for unnecessary orthotic braces, foot baths, and genetic tests.

Smith's scheme involved deceptive telemarketing campaigns coordinated through a marketing company he owned and an offshore call center in the Philippines. Audio recordings presented at trial captured Smith pressuring beneficiaries to accept unwanted medical products. He obtained fraudulent doctors' orders by paying kickbacks to illegitimate telemedicine companies, then sold these orders to other suppliers who submitted false claims to Medicare. In some cases, the company used forged doctor signatures on fake orders.

Smith pleaded guilty in March 2025 to conspiracy and health care fraud charges but fled before sentencing. The U.S. Marshals Service apprehended him after more than a month at large. The court ordered Smith to pay $30.2 million in restitution and forfeit $9.2 million plus Texas real estate.

Originally reported by US Dept of Justice
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