Wheelchair fraud trial to go ahead

BOISE — A Hayden Lake businessman who allegedly billed Medicare and Medicaid for $6,000 electric wheelchairs while actually giving his elderly clients $2,000 scooters is headed to trial in federal court in Coeur d’Alene.

But five of the 77 health-care fraud counts against Christopher Close, former owner of Back-N-Action, have had to be dismissed in the much-delayed $200,000 fraud case, which has been in the works for three years. The reason: Elderly witnesses have either died, become too ill to testify, or can no longer be found.

Brian Thie, a court-appointed Moscow attorney who is representing Close, said, “I know some people have died, and some counts have been dismissed, but I don’t know when the people died, if they died before the indictment or when.”

U.S. District Judge Edward Lodge recently refused to allow Close to change attorneys for a second time, which would have forced further delays in the trial.

“Were the court forced to grant similar motions in every instance, defendants may effectively avoid trial or manipulate the system of justice,” the judge wrote in his order. He added in a footnote, “Since this case has been pending, certain witnesses have deceased or become too ill to testify at trial, necessitating the dismissal of certain counts. Further delay would exacerbate this issue.”

Dozens of mostly elderly Medicare and Medicaid recipients are among the 86 witnesses tentatively scheduled to testify in the jury trial, which is expected to last for three weeks and start on July 14.

Federal prosecutor Wendy Olson, an assistant U.S. attorney, said she’s hoping the trial starts on schedule. “We are ready,” she said.

According to the indictment, Close’s business billed Medicare and Medicaid on multiple occasions for the more-expensive wheelchairs, while providing clients with scooters or nothing at all. It also allegedly billed for various accessories for the electric wheelchairs, and on many occasions billed for expensive, pressure-reducing gel positioning cushions that cost nearly $300 apiece, while providing clients only with cheap foam cushions.

In addition to the health care fraud charges, Close is charged with money laundering and obstructing a federal audit. He faces up to 10 years in prison if convicted on each fraud count and up to 20 years on each money-laundering count, plus possible forfeitures of cash and real estate.

Olson said similar fraud cases have come up elsewhere. “It’s been a problem identified by the Department of Justice, and has been pursued aggressively,” she said. “Durable medical equipment is an area, I guess, it’s one that’s rife with fraud. There have been several similar prosecutions throughout the country – power wheelchairs were billed, and scooters were provided.”

The two serve different medical needs, and in some cases, Medicare wouldn’t cover a scooter when it would cover a power wheelchair for a particular patient.

Legal documents filed in the case allege that Close, a Rathdrum resident, set up his Hayden Lake business in 1995 and applied to provide durable medical equipment to beneficiaries of Medicare and Medicaid. Starting in January of 1998, the indictment charges numerous instances of fraudulent billings, extending through late May of 2001.

In October of 2001, according to the indictment, Close sold Back-N-Action’s assets to Soper’s Mobility Aids, and went to work for Soper’s. He is no longer affiliated with Soper’s, according to authorities.

Mary Jacobsen, community services manager for Aging and Adult Services of North Idaho, said, “Seniors are vulnerable to a lot of different types of exploitation … Because it’s this type of fraud that lowers the funds that allow our seniors to get the services they need.”

North Idaho’s senior population is growing rapidly, but funds remain stagnant, and many seniors end up on waiting lists for needed services, Jacobsen said.

Olson cautioned that Close has merely been charged, and is presumed innocent until proven guilty.

The investigation started with a search warrant in the fall of 2001, and Close was first indicted by a grand jury in March of 2003. A subsequent, superseding indictment was issued in August of 2003.

“In virtually any white-collar or health care fraud case, it takes a while to go through all the records and compare them against billings, put it all together,” Olson said. “It’s not an unusual period of time. What is somewhat unusual is the period of time that it has taken from charging the case until trial – it’s now been 16 months, basically, since the indictment.”

Thie, Close’s attorney, said he is still representing Close. “There are always two sides to every story. That’s what the trial is about.”

But, he said, “I can’t comment before the trial.”

Among the assets to which prosecutors are seeking forfeiture is Close’s home, which court records say was constructed inside a pole barn, without knowledge of the county assessor. Typically, residences are assessed more in property taxes than barns. Court documents also allege that Close has stopped making mortgage payments on the home since the case has been pending, leaving the private mortgage holder in the lurch throughout the delays in the case.

Jacobsen said her office receives about 10 allegations a month of exploitation of seniors, which is becoming increasingly common.

If seniors believe they are being exploited in any way, Jacobsen urged them to call her office toll-free at (800) 786-5536, contact law enforcement, or talk to a trusted friend or relative.

“We would certainly encourage seniors to be aware, to stay on top of things if possible, to talk to family members, to keep someone that they really trust involved,” she said. “And if they have any doubt whatsoever, to please, please call our office, and we’d be more than happy to talk to them to see what we can do.”