Damian Williams, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the US Department of Health and Human Services Office of Inspector General (“HHS-OIG”) New York Regional Office announced the arrest of Zachary S. Seid and Anthony Cracchiolo on charges of conspiracy, healthcare fraud, wire fraud, and unlawfully receiving kickbacks in connection with Medicare. As alleged in an Indictment unsealed today in Manhattan federal court, Seid and Cracchiolo, ran companies dedicated to illegally buying and selling prescriptions for durable medical equipment (“DME”) such as leg, arm, and back braces, and then using those prescriptions to file fraudulent Medicare claims for more than $11 million, as well as selling such prescriptions to other DME supply companies, so that those companies in turn could also file fraudulent Medicare claims. The case has been assigned to U.S. District Judge John P. Cronan. Seid and Cracchiolo, who were arrested this morning in Florida, will be presented tomorrow before magistrate judges in the Southern District of Florida.
