Patrick Cassells (65), Texas, sentenced to 90 months in prison for Medicare fraud
Scheme involved $59.9 million in fraudulent Medicare claims
Cassells owned and operated three DME companies
Used a front owner to hide his control in Medicare records
Paid illegal kickbacks to obtain doctors’ orders and patient data
Billed Medicare for orthotic braces (knee, back, shoulder, wrist)
A Texas businessman has been sentenced to over seven years in federal prison for orchestrating a massive Medicare fraud scheme involving durable medical equipment (DME), U.S. authorities confirmed.
Patrick Cassells, 65, of Fulshear, Texas, was sentenced to 90 months in prison for his role in a $59.9 million Medicare fraud conspiracy, according to the U.S. Department of Justice.
The case highlights ongoing federal efforts to crack down on healthcare fraud, particularly schemes involving unnecessary medical equipment billed to Medicare.
According to court documents, Cassells owned and operated three DME companies and played a central role in submitting fraudulent claims to Medicare.
To conceal his involvement, he falsely listed another individual as the sole owner and manager of one of the companies in a Medicare enrollment application.
Cassells and his co-conspirators executed the fraud through a kickback-based system:
He paid illegal kickbacks to marketers and others
These individuals supplied signed doctors’ orders and supporting documentation
The paperwork enabled billing Medicare for orthotic braces, including:
Knee braces
Back braces
Shoulder braces
Wrist braces
Many of these items were medically unnecessary, forming the core of the fraudulent billing scheme.
The conspiracy resulted in approximately $59.9 million in fraudulent claims submitted to Medicare, making it a significant financial crime targeting a federal healthcare program.
Medicare, which provides health coverage primarily to seniors and certain disabled individuals, remains a frequent target for fraud schemes involving durable medical equipment due to the volume and nature of claims.
Cassells’ 90-month prison sentence reflects the seriousness of the offense and the federal government’s stance against healthcare fraud.
Authorities emphasized that such schemes not only result in financial losses but also undermine trust in healthcare systems and divert resources from patients who genuinely need care.
This case is part of a broader enforcement push by U.S. agencies to combat fraud involving:
Durable medical equipment
Telemedicine-linked billing schemes
Kickbacks for patient referrals
Officials continue to investigate and prosecute individuals and networks exploiting Medicare through fraudulent billing practices.
Reference:
U.S. Department of Justice. “Owner of Durable Medical Equipment Company Sentenced for $59M Medicare Fraud.” Last modified March 2026. https://www.justice.gov/opa/pr/owner-durable-medical-equipment-company-sentenced-59m-medicare-fraud
