Reginald Fullwood Jr., a 59-year-old resident of Madison, has been sentenced to more than three years in federal prison for his role in a conspiracy to defraud the United States, the U.S. Attorney’s Office for the Southern District of Mississippi announced today.
Fullwood, who pleaded guilty to the charges on August 28, 2024, was involved in a fraudulent scheme where he paid illegal kickbacks to a marketer in exchange for obtaining completed doctors’ orders for durable medical equipment (DME). These orders allowed his company, Jackson Medical Supply, to submit fraudulent claims to Medicare and Medicare Advantage for orthotic braces that were not medically necessary or eligible for reimbursement.
Medicare covers DME prescribed by Medicare-enrolled doctors, but Fullwood’s actions involved submitting claims for equipment that did not meet the required medical necessity. After Medicare began investigating Jackson Medical Supply’s billing practices, Fullwood attempted to continue the fraudulent activity by creating a second company under a nominee owner to conceal his involvement. The new entity continued to submit fraudulent claims to Medicare, further perpetuating the illegal activity.
In total, Fullwood’s actions led to approximately $12.4 million in fraudulent Medicare claims, of which the entities received about $6.4 million in reimbursements for unnecessary DME. Fullwood’s sentencing serves as a significant reminder of the consequences of defrauding healthcare systems meant to provide necessary medical support.