A Wisconsin man has been sentenced for his role in a scheme to defraud Medicare out of millions of dollars. Bruce Johnson, 72, will serve 18 months in prison for participating in a conspiracy to pay kickbacks for durable medical equipment prescriptions, according to the U.S. Attorney's Office for the Eastern District of Wisconsin.
Johnson, owner of Kestrel Medical LLC, and his co-defendant Michael Comino used the company to funnel Medicare funds for their own gain from 2018 until the company declared bankruptcy. Judge J.P. Stadtmueller emphasized the seriousness of Johnson’s actions during sentencing.
Kestrel Medical, based in Oconomowoc, sold orthotic devices such as braces. The company violated Medicare rules, resulting in over $2 million in fraud. Johnson has been ordered to repay this amount as restitution.
In addition to prison, Johnson will serve three years of supervised release. The investigation was conducted by the FBI and the Department of Health and Human Services, Office of Inspector General, with prosecution led by Assistant U.S. Attorney John Scully. Alan Karr, FBI Milwaukee Special Agent in Charge, said the sentence demonstrates that healthcare kickback schemes will not be tolerated.
U.S. Attorney Brad D. Schimel noted that the case highlights the ongoing effort to protect public benefits and maintain integrity in the healthcare system.
