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New York Man Pleads Guilty to Operating Kickback Scheme Involving Medicare and Medicaid

US Attorney Michael DiGiacomo announced that Timothy Klein, 49, of Fayetteville, NY, pleaded guilty to conspiracy to pay and receive healthcare kickbacks, which carries a maximum penalty of five years in prison and a $250,000 fine. Assistant US Attorneys Franz M. Wright and Paul E. Bonanno, who are handling the case, stated that between February 2017, and September 2018, Klein conspired with others to defraud Medicare and Medicare drug plan sponsors. Klein, who operated JRS Group, LLC, and his co-conspirators enriched themselves by, among other things, submitting prescription drug claims to Medicare and Medicare drug plan sponsors for items that were medically unnecessary and procured through kickbacks and bribes, and diverting fraud proceeds for their own personal use and benefit.