The FBI has reportedly raided The Scooter Store headquarters. The raid is apparently tied to allegations of Medicare fraud.
The Scooter Store sells powered mobility scooter chairs. The FBI reportedly asked around 1200 employees to leave the corporate offices today before they began their search. Agents involved in the search say that the investigation is in cooperation with the Medicaid Fraud Control Unit, and that there were no arrests.
As reported by mysanantonio.com, FBI Special Agent Erik Vasys made a brief comment concerning the raid:
“I can confirm we’re there, conducting a regular and usual investigative activity, the details of which I can’t discuss further.”
This is not the first time The Scooter Store has been accused of Medicare fraud. The FBI raid is part of an ongoing issue. A settlement was recently reached when it was determined that The Scooter Store had received overpayment from the Centers for Medicare and Medicaid Services between 2009 and 2011. They agreed to pay back over $19 million per a negotiated settlement.
In 2011 Medicare and the Justice Department worked together to eliminate excessive spending on motorized scooters. Medical-equipment companies were scrutinized, as it was discovered that they were overcharging Medicare for the mobility devices.
As reported by USA Today, The inspector general found that Medicare was being billed nearly double the scooters’ worth. Additionally, the investigation found that in 2007 over 60 percent of scooters that Medicare paid for were not necessary for patients. As a result, Medicare service costs have continued to rise. The Scooter Store is one of many equipment providers contributing to the problem.
The FBI raid on The Scooter Store is part of an ongoing investigation and details are still emerging.