MILWAUKEE — A 72-year-old Delafield man was sentenced to 18 months in federal prison for his role in a conspiracy to pay illegal health care kickbacks that resulted in more than $2 million in improper Medicare payments, federal prosecutors said.
Bruce Johnson was sentenced Jan. 30 by U.S. District Judge J.P. Stadtmueller after pleading guilty to conspiracy to pay health care kickbacks, a violation of the federal Anti-Kickback Statute. In addition to the prison term, Johnson was ordered to serve three years of supervised release and to pay more than $2 million in restitution to Medicare.
Johnson co-owned Kestrel Medical LLC, a durable medical equipment supplier based in Oconomowoc, with co-defendant Michael Comino. The company provided orthotic devices, including braces for ankles, knees, backs and shoulders.
According to court records, Johnson signed certifications on behalf of Kestrel agreeing to comply with Medicare laws and regulations. Beginning in 2018, however, he paid kickbacks to several companies that purported to provide marketing services. The payments were made in exchange for signed prescriptions for medical equipment that Kestrel then submitted to Medicare for reimbursement.
Comino became a 50 percent owner of Kestrel in February 2020, and the company continued paying kickbacks for doctors’ orders, prosecutors said. As a result of the scheme, Medicare paid more than $2 million to Kestrel.
Before Kestrel entered bankruptcy proceedings, Johnson also transferred $150,000 in company funds to one of Comino’s businesses, an action prosecutors said was intended to strip Kestrel of assets.
At sentencing, Stadtmueller cited the seriousness of the offense and the need to deter similar conduct.
Comino pleaded guilty to the same charge last year and was sentenced to 22 months in prison, along with supervised release and restitution.
