A resident of Fairfield, Connecticut, has been sentenced to 30 months in prison for his involvement in a health care fraud scheme that resulted in fraudulent claims totaling over $7.8 million. Jesse Foote, aged 60, received this sentence on March 15, 2024, during proceedings in federal court in Newark, New Jersey, according to the U.S. Attorney’s Office. Foote had previously pleaded guilty to two counts, which included conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
Between December 2017 and March 2021, Foote collaborated with a network of overseas telemarketing call centers, durable medical equipment (DME) suppliers, telemedicine companies, and medical professionals to submit fraudulent claims to health care benefit programs, including Medicare and TRICARE. Authorities characterized the operation as a “circular scheme of kickbacks and bribes.”
Foote operated a marketing company that acquired patient “leads” from overseas telemarketers. These leads contained personal information about Medicare beneficiaries, as well as pre-written doctors’ orders for DME. The telemarketing call centers focused on persuading Medicare beneficiaries and others with health insurance to accept unnecessary DME, including orthotic braces.
As part of the scheme, Foote allegedly paid bribes to telemedicine companies, which subsequently funneled kickbacks to doctors. This process enabled the acquisition of doctors’ orders for DME based solely on the leads provided. The U.S. Attorney’s Office noted, “The doctors often approved the DME orders without having any contact with the beneficiary and without making a bona fide assessment that the DME was medically necessary.”
Once the orders were signed, Foote sold them to other parties involved in kickback arrangements. The signed doctors’ orders were submitted to DME suppliers, including those controlled by Foote, which then filed fraudulent claims for reimbursement to health care benefit programs.
Authorities reported that the fraudulent claims submitted through this scheme amounted to more than $7.8 million. During sentencing, Foote was also ordered to serve three years of supervised release following his prison term and to pay restitution equivalent to the total amount of fraudulent claims.
This case highlights ongoing issues within the health care system where fraudulent practices can exploit vulnerable populations and ultimately cost taxpayers billions. The U.S. Attorney’s Office continues to combat health care fraud to ensure the integrity of health care programs.