HOUSTON (CN) – The adult diaper business is inherently messy, but two Houston siblings have federal authorities holding their noses over an alleged medical supply scam that prosecutors say defrauded Medicaid of more than $1 million.
Benjamin Essien, 32, and Rose Essien, 28, owners and operators of Logic World Medical, were arrested Wednesday and charged with eight counts of health care fraud, two counts of aggravated identity theft and conspiracy.
The indictment alleges that between April 2004 and August 2006 the Essiens billed Medicaid for adult incontinence supplies such as diapers and pads without delivering all or any of the supplies.
The claims totaled $1,782,861 and the siblings collected $1,101,865 in payments from Medicaid, prosecutors say. The brother and sister also are charged with misusing the personal identification of Medicaid beneficiaries and physicians.
The siblings are set to be released on separate $50,000 bonds. If convicted, they face sentences of up to 2 years for aggravated identity theft, and up to 10 years and $250,000 fines for each of the other counts.