In a significant verdict from Miami, two healthcare executives have been convicted by a federal jury for masterminding a $34 million fraud scheme that preyed on elderly Medicare Advantage beneficiaries, according to an announcement by the U.S. Department of Justice. The perpetrators, Michael Kochen, 42, and Sandro Herek, 56, were found guilty on Dec. 22, 2025, for peddling medically unnecessary durable medical equipment, such as braces for various body parts, exploiting the trust and vulnerabilities of senior citizens.
The DOJ reported that this elaborate scheme used deceptive telemarketing tactics, which involved persistent cold calls to beneficiaries who had never asked for such services, pressuring them into accepting equipment they neither needed nor wanted as evidence presented at trial demonstrated, and over $17 million was paid out by Medicare Advantage plans on these fraudulent claims, the orchestration was not just an attack on the healthcare system but a pointed exploitation of the elderly. In their cold call operations based overseas, representatives employed high-pressure strategies, misleading beneficiaries into believing they would not bear any costs for the unwanted braces.
Adding to the gravity of the scheme, "The jury saw through it. This verdict sends a clear message that schemes targeting seniors and abusing our healthcare system will be met with accountability and real consequences," remarked U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida in a statement obtained by the Department of Justice. Physicians were also implicated, issuing medical authorizations for braces based on call recordings or templated justifications devoid of appropriate evaluations, in some cases, without even conversing with the patients.
Kochen, who managed multiple companies dealing in medical supplies, and Herek, who directed the aggressive outbound call centers, were found guilty of multiple counts including health care fraud and conspiracy to commit health care and wire fraud, further Kochen paid kickbacks to telemedicine companies procuring prescription orders for unnecessary equipment, a court is set to determine their sentences on Mar. 25, reflecting on federal guidelines and other statutory factors. According to the U.S. Attorney’s office, these executives face up to 20 years in prison for the conspiracy conviction, and additional years for the multitude of fraud and kickback charges.
This case has been brought to the forefront by the efforts of the U.S. Attorney's Office for the Southern District of Florida, with assistance from the Health and Human Services Office of Inspector General and the FBI’s Miami branch. Further information on the case can be found on the Southern District of Florida's website, as well as court documents filed under case number 24-cr-20078.
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