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Policy & oversight

Florida Man Pleads Guilty in 42 Million Dollar Medicare Fraud Combining Braces and Cancer Testing

Chad Monroe of Tarpon Springs admitted to running three equipment companies that billed Medicare for unnecessary orthotics, while separately selling cancer-test referrals to labs that paid him illegal kickbacks.

By the Goodsurance editorial teamNovember 14, 2026

Chad Monroe, 48, of Tarpon Springs, Florida, pleaded guilty on November 13, 2026 to conspiracy to commit health care fraud and wire fraud in connection with a scheme that generated more than 42 million dollars in false claims against Medicare, Medicare Advantage plans, and TRICARE.

According to the Department of Justice, Monroe and co-conspirators opened three durable medical equipment companies and submitted more than 26 million dollars in claims for braces and other orthotics that beneficiaries did not want or need. To obtain the physician orders required to bill for the equipment, Monroe paid kickbacks to telemedicine companies that generated prescriptions without meaningful patient contact.

A Florida man admitted to 42 million dollars in Medicare fraud, billing for unneeded braces and selling cancer test referrals for kickbacks.

Monroe also operated a separate business that purchased physician orders for cancer genetic testing and resold those referrals to clinical laboratories. The labs paid him more than 15 million dollars in return.

Federal investigators seized proceeds of the scheme, including a 47-foot yacht that Monroe purchased with fraud funds and more than one million dollars in cash. Monroe also faces allegations of fraudulently obtaining a federal small-business loan.

Monroe faces a maximum of 10 years in prison on the health care fraud conspiracy count and up to 30 years on the wire fraud count. A sentencing date had not been set as of the guilty plea.

In plain words

A man from Florida admitted to cheating Medicare out of 42 million dollars. He ran companies that sent Medicare bills for back braces and knee supports that patients never asked for. He also bought doctors' orders for cancer tests and sold them to labs, which paid him back for the business. The government took his yacht and more than one million dollars in cash. He now faces up to 30 years in prison.

Source: DOJ
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