A New Jersey business owner was sentenced to 87 months in prison for conspiring to defraud Medicare of $172 million, commit money laundering, and pay kickbacks and bribes in violation of the Anti-Kickback Statute, Senior Counsel Philip Lamparello announced. US District Judge Michael E. Farbiarz imposed the sentence on Aaron Neil Williamsky, 65, of Marlboro, New Jersey, on November 17, 2025. Williamsky was also ordered to pay more than $172 million in restitution. From 2015 to 2019, Williamsky led and organized a fraud scheme in which he opened or purchased durable medical equipment (“DME”) supply companies, submitted fraudulent claims to Medicare on behalf of those companies, closed the companies one-by-one to avoid Medicare audits and recoupment, and then opened or purchased new DME companies. He concealed his ownership interest in this web of more than twenty DME companies by employing others to serve as “nominee,” or straw owners.
To generate fraudulent orders, Williamsky and his co-conspirators hired marketing companies to make unsolicited calls offering elderly patients free orthotic braces. In exchange for each patient who agreed to accept DME, Williamsky paid a kickback to the marketing companies in violation of the federal Anti-Kickback Statute. To conduct the scheme, Williamsky used sham contracts and invoices that falsely characterized kickbacks he paid as “business process outsourcing” and “marketing expenses.” To evade detection and avoid taxes, Williamsky transferred a portion of the fraud proceeds to overseas bank accounts, where the funds were laundered through shell corporations and foreign real estate holdings.