A 54-year-old Nigerian national, Ifeanyi Ozoh, has been sentenced to six years in federal prison after being found guilty of conspiring to pay and receive healthcare kickbacks and illegally paying marketers. The announcement came via a statement by U.S. Attorney Alamdar Hamdani, published on the U.S. Department of Justice website.
A federal jury reached its unanimous decision in just one hour following a three-day trial, convicting Ozoh on all counts on February 14, 2024. On Wednesday, November 13, U.S. District Chief Judge Randy Crane handed down the 72-month sentence, which will be followed by three years of supervised release. Ozoh was also ordered to pay $4.9 million in restitution to Medicaid.
During the trial, prosecutors revealed the extent of Ozoh’s role in a sophisticated kickback operation. As an employee at Floss Family Dentalcare Center between January 2020 and February 2021, Ozoh bribed marketers and parents to bring Medicaid-insured children to the clinic.
The court heard that marketers were paid between $20 and $100 per child referred to Floss, with Ozoh making these payments in cash and often in secret. In one instance, marketers testified that payments were hidden on top of a vending machine in a hallway near the clinic.
Despite warnings from a clinic manager about the illegality of these practices, Ozoh continued his actions, ultimately paying out over $163,000 in bribes. He also received bonuses for meeting patient referral quotas, further incentivizing his involvement.
Floss Family Dentalcare Center billed Medicaid over $6 million between 2020 and 2021. The clinic received over $4 million from these claims, many of which were tied to kickbacks or based on services that were never rendered. Medicaid regulations explicitly prohibit payments for referrals, as emphasized by a representative during the trial.
Judge Crane emphasized the overwhelming evidence against Ozoh, noting his central role in the fraudulent scheme. While Ozoh remains out on bond, he is required to surrender to a U.S. Bureau of Prisons facility, the location of which will be determined in the coming weeks.
The case was investigated by the FBI, the Texas Attorney General’s Medicaid Fraud Control Unit, and the Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorneys Kathryn Olson and Lauren Valenti led the prosecution, presenting a strong case that resulted in Ozoh’s conviction.
This case serves as a reminder of the consequences of defrauding government healthcare programs and the determination of federal authorities to uphold the law.
