Agents Swarm Scooter Store

FBI, HHS OIG, state authorities execute search warrant at national mobility brand’s New Braunfels headquarters.

Federal and state agents executed a search warrant Wednesday at the New Braunfels, Texas headquarters of national power mobility provider The Scooter Store.

Federal authorities have yet to comment on the raid but a report from the San Antonio Express-News said that an unnamed source with knowledge of the investigation claimed that The Scooter Store was being investigated on how it bills for its equipment.

To that end, authorities also executed a search warrant at a San Antonio-based information management services firm where The Scooter Store keeps data records.

Roughly 150 law enforcement officials from the FBI, the Department of Health and Human Services’ Office of the Inspector General, and the Texas attorney general's Medicaid Fraud Control Unit searched the Scooter Store’s offices. Most employees were told to leave, but some employees — most likely members of executive management — were told to stay, the Express-News reported.

Recently, the company laid off 150 employees of its 1,800-member workforce in the wake of CMS’s announcement of the Round Two bid rates, and had laid off another 220 in September. It also entered into a deal with CMS to return $19.5 million of what an auditor found to be between $46.8 million and $87.7 million in overpayments it received during 2009 to 2011.

The provider is well known for its television advertisements enticing customers to have Medicare and Medicaid pay for their power mobility devices.

About the Author

David Kopf is the Editor of HME Business.

Comments

Sun, Feb 24, 2013 kathy webb columbus, ohio

This would be great news except that it should have happened years ago. This bad apple is one of the reasons the DME industry is in such a mess. Low reimbursements & competative bidding is killing the small, honest independents and creating more big monster suppliers like the Scooter Store.

Sat, Feb 23, 2013 MJJP PA

They need to investigate the former head of the main product line who is now in GOV Corbett of PA administration. An even bigger issue is that the scooter store has been getting power chairs into the homes of people who could not use them either through physical incapacities or the units were simply too big for the home. Check your local classifieds and Craigslist for these items offered as "never being used" etc.

Sat, Feb 23, 2013

STILL NOT A BAD DEAL FOR THE SCOOTER STORE , STEAL 87 MILLION AND PAYBACK 19 MILLION . SHOWS HOW IGNORANT MEDICARE IS .

Fri, Feb 22, 2013 Kool Aid Midwest

The Scooter Store drank the same kool aid that Lance Armstrong, Bernie Madoff and maybe Mr. Blade Runner....After you tell yourself enough times that you are above the law...pretty soon you believe it. Those involved in this scheme to cheat the Medicare system should be put on trial and held accountable to the max the law permits. Therefore others who think about drinking the kool aid may pass and choose another beverage. Shame on the Scooter Store. We all live in your dreaded dishonest shadow.

Fri, Feb 22, 2013 Spider

Glad to see this 800lb gorilla (Scooter Store) finally get put in a cage. Does the DME industry really wonder why we are under the scrutiny we are? Thanks Liberty and thanks Scooter.

Fri, Feb 22, 2013

fially the federal agents got up to speed to the TV advertisement that have been going for years and the seniors and the Medicare has been taken for ride. They also employed the ex- medicare executive on their payroll.

Fri, Feb 22, 2013 Gary Hines

The most interesting thing is that on the same page as your article is a typical lure for a "free scooter eval", which is actually a Scooter Store link! It demonstrates how embedded they are in the industry -- but I still wonder about promoting them along with the article.

Fri, Feb 22, 2013 Tom Foy Cincinnati

The Queen City Store was 20 or 25 years ago and he is still in business under another name GO FIGURE! If your found guilty of fraud ONCE you should never be allowed in DME business ever again......

Fri, Feb 22, 2013

Is this surprising to anyone, because I am just asking myself why CMS keeps allowing them to get away with the things they do...they should have been shut down years ago. GREAT JOB CMS WAY TO LATE

Fri, Feb 22, 2013

Who did not see this coming?

Fri, Feb 22, 2013

The Scooter store in part is the reason Medicare is cutting back on the claims for Power Chairs and Scooters. One other Place is Hoverroud. They have done the same thing to Power Mobility that Queen City Store in Ohio did to Seat Lift Chairs about 10-15 years ago and now the problem is the people that really suffer are the Patients that really need Power Mobility and will not be able to because of the Medicare Cut backs

Fri, Feb 22, 2013

any details on the billing practices that lead to this investigation?

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