Texas Man Sentenced to 12 Years for $61 Million Medicare Telemarketing Fraud

Miami, Fla.— A Texas fugitive who ran a nationwide telemarketing scheme that defrauded Medicare of more than $61 million has been sentenced to more than 12 years in federal prison, the Justice Department announced Friday.

Robert “Bobby” Leon Smith III, 50, of Archer City, Texas, was ordered to serve 150 months in prison and two years of supervised release for leading a multimillion-dollar conspiracy that targeted thousands of Medicare beneficiaries with deceptive telemarketing campaigns. He must also pay more than $30 million in restitution and forfeit $9.2 million and real estate holdings in Texas.

According to court filings and trial evidence, Smith owned and operated seven durable medical equipment (DME) supply companies across Texas, Florida, and Maryland. Through these companies, prosecutors said, he submitted fraudulent claims to Medicare for orthotic braces, foot baths, and genetic tests that patients neither needed nor requested.

To recruit patients, Smith and his associates used a Texas marketing firm and an offshore call center in the Philippines to run high-pressure sales campaigns. Recordings played in court captured Smith and others coercing beneficiaries to accept medical products even after they declined. He also paid kickbacks to telemedicine companies for doctors’ orders, which he later sold to other suppliers for use in false Medicare claims.

“He ran a brazen operation that exploited elderly Medicare recipients and bilked taxpayers out of tens of millions of dollars,” said A. Tysen Duva, Assistant Attorney General of the Justice Department’s Criminal Division.

Prosecutors said Smith’s pursuit of profit went so far as purchasing fake physician orders when legitimate ones ran dry. In one recorded conversation, he dismissed useless orders as “trash” and “junk.” A former business partner testified that some of the paperwork even included the forged signatures of doctors unaware their names were being used.

Smith pleaded guilty in March 2025 to conspiracy to commit health care fraud and wire fraud, and one count of health care fraud, but absconded before sentencing. He evaded law enforcement for more than a month before being captured by the U.S. Marshals Service.

“This sentence reflects the Justice Department’s commitment to protecting vital health care programs and holding accountable those who exploit vulnerable patients,” said Scott J. Lampert, Acting Deputy Inspector General for Investigations at the Department of Health and Human Services Office of Inspector General (HHS-OIG).

Nine Charged in Massachusetts Benefit Fraud Crackdown Targeting Nearly $1 Million in Stolen Aid

Boston, Mass. — Federal authorities have charged nine people in Massachusetts and New Hampshire with participating in schemes that used stolen identities to fraudulently obtain nearly $1 million in government benefits, including SNAP, MassHealth, and Social Security payments, officials announced Thursday.

According to charging documents, the defendants allegedly used stolen identities—often belonging to U.S. citizens from Puerto Rico—to acquire government-issued identification, including Massachusetts driver’s licenses and, in some cases, U.S. passports. Using those false identities, they allegedly applied for and received public benefits over periods spanning years or even decades.

The defendants charged include: Juan Felipe Chalas, 58, of Salem, N.H.; Efrain Rivera, 54, of New Bedford, Mass.; Danis Piron Lara, 51, of Dorchester; Erpawi Roque Collado, 53, of Boston; Wilkin Emilio Pimental Pereyra, 44, of Boston; an unidentified man living in Hyde Park; Mercedes Soto Capellan, 53, of Lawrence; Oscar Gonzalez Melo, 59, of Boston; and Cruz Augusta Pena Arias, 58, of Salem.

Each defendant faces varying charges including aggravated identity theft, theft of government benefits, making false statements in health care and passport applications, and misuse of Social Security numbers.

Prosecutors allege the group’s activities caused approximately $943,000 in total losses—$776,000 to MassHealth, nearly $150,000 to the Supplemental Nutrition Assistance Program, and more than $16,000 to Social Security.

“Exploiting taxpayer-funded programs harms both the people who depend on them and the integrity of the system itself,” said U.S. Attorney Leah B. Foley for the District of Massachusetts. “This office will continue to prioritize benefit fraud prosecutions and hold accountable those who steal from programs meant to help vulnerable populations.”

Law enforcement officials said several defendants had previously used the same stolen identities to mislead police during earlier arrests, and at least one had a prior conviction under a false name.

“These cases demonstrate the breadth and persistence of benefit fraud schemes that drain millions from public programs,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI) in New England.

If convicted, the defendants face potential sentences ranging from five to 20 years in prison, depending on the charges, along with fines of up to $250,000.

Officials emphasized that the defendants are presumed innocent until proven guilty.