Gov’t takes down scheme involving kickbacks, straw companies

Wednesday, November 18, 2020

NEWARK, N.J. – The owner of a group of DME companies has admitted his role in a conspiracy to pay kickbacks in exchange for DME, the U.S. Attorney’s Office for the District of New Jersey has announced. Albert Davydov, 28, of Rego Park, N.Y., has pled guilty by videoconference before a U.S. district judge to an indictment charging him with conspiring to violate the Anti-Kickback statute. Davydov, the owner of nine DME companies, participated in a scheme to pay kickbacks in exchange for orders from doctors for medical unnecessary orthotic braces. Once Davydov and his conspirators received the completed orders, they billed Medicare and other federal and private health care benefit programs for the braces. Davydov concealed his ownership of the DME companies by falsely reporting to Medicare that various straw owners owned the companies. As part of his plea agreement, Davydov has agreed to pay back more than $16 million.