Article - August 4, 2008 - Triangle Business Journal

Former Orthoscript COO gets jail time for Medicare scam and fraud

U.S. District Judge Charles A. Pannell Jr. on Monday sentenced former Orthoscript Inc. executive and Atlanta resident Angela Isley to federal prison for bilking Medicare of more than $600,000 over a three-year period.

Isley was sentenced to five years and 10 months in federal prison to be followed by three years of supervised release, and was ordered to pay $703,814 in restitution. Pannell further ordered Isley to pay a $125,000 fine, partly because of extra costs incurred by the government to dig up hundreds of documents demanded by Isley during its investigation.

Isley is the former chief operating officer of Alpharetta, Ga.-based medical supply company Orthoscript. She submitted false claims to Medicare for durable medical equipment and embezzled hundreds of thousands of dollars from Orthoscript while she was employed at the company.

Between January 2001 and December 2003, Isley assigned incorrect product codes to certain wrist braces and walking boots in Orthoscript's inventory to generate higher reimbursements from Medicare. She ordered company employees, often over their objections, to file claims with Medicare listing fraudulent product codes pertaining to custom-fabricated wrist braces, when all Orthoscript supplied were cheaper, prefabricated, off-the-shelf items.

As a result of the health-care fraud scheme, Isley caused Orthoscript to fraudulently bill Medicare more than $600,000.

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