Federal prosecutors say an Archer City man turned phone pitches and medical gizmos into a $61.5 million Medicare racket. On Wednesday, it caught up with him.
Robert "Bobby" Leon Smith III, 50, was sentenced to 150 months in federal prison after prosecutors said he ran a telemarketing and durable-medical-equipment operation that billed Medicare for $61.5 million in unnecessary orthotic braces, foot baths and genetic tests. The court also ordered Smith to pay $30,158,608.25 in restitution, forfeit more than $9.2 million and certain Texas real estate, and serve two years of supervised release. Evidence at trial included recorded calls and paperwork that prosecutors say showed the operation pressuring elderly beneficiaries and funneling forged or bought doctors’ orders through a network of suppliers.
What prosecutors say
According to prosecutors, Smith owned seven DME companies based in Florida, Texas and Maryland and ran a Texas marketing business that supplied leads to an offshore call center in the Philippines. Investigators say those leads were used to obtain doctors’ orders that were then sold or used to submit false claims to Medicare. After four days of trial, Smith pleaded guilty in March 2025 to conspiracy to commit health care fraud and wire fraud and to health care fraud. He then failed to appear for his original sentencing date and remained a fugitive for more than a month before the U.S. Marshals Service caught up with him. As detailed by the U.S. Department of Justice, the government says the ring paid kickbacks and used forged signatures to make the paperwork look legitimate.
Trial recordings and ‘trash’ orders
Jurors heard audio of Smith and his associates leaning on seniors to accept equipment they did not want, and of Smith grumbling about unsold files, dismissing some orders as "trash" and "junk." A former business partner testified that the group moved into using forged doctor signatures and that some of those orders were sold to other suppliers, who then billed Medicare. Tampa Free Press reported on the recordings and on witness testimony played at sentencing.
Part of a wider enforcement push
Federal authorities say Smith’s case fits a broader pattern of telemarketing and telemedicine DME fraud that has been under a microscope for years. The 2025 National Health Care Fraud Takedown, for example, resulted in charges against hundreds of defendants and alleged roughly $14.6 billion in intended losses, underscoring how call-center lead generators and sham telemedicine vendors have been used to exploit Medicare. The Office of Inspector General and other agencies have repeatedly warned beneficiaries to be wary of unsolicited medical offers.
Sentence and legal notes
Smith pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and a separate count of health care fraud. The judge imposed the 150-month prison term along with the restitution, forfeiture and supervised release described above. The Department of Justice said the Criminal Division’s Fraud Section prosecuted the case, with investigative work by the FBI’s Miami Field Office and the HHS Office of Inspector General. The U.S. Department of Justice said prosecutors sought restitution and forfeiture to claw back taxpayer losses.
Protecting seniors and reporting tips
Officials are again urging Medicare beneficiaries to comb through their Medicare Summary Notices and treat any unsolicited calls offering free medical equipment or tests as a red flag, since legitimate providers do not cold-call to sell DME. If you believe you were contacted or billed as part of a telemarketing scam, you can report suspected fraud to the HHS Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477) or through the agency’s online hotline for more guidance. HHS-OIG offers resources for seniors and caregivers on spotting and reporting these scams.
