Sunday, February 15, 2009

Man charged in adult diaper fraud

The owner of a Texas medical supply company is charged with fraudulently billing the U.S. government for $1 million (£696,475) in adult diapers that customers never received, federal prosecutors said on Friday.

Ernest Hogan, 59, who ran Shanet Medical Source in Houston, is accused by federal prosecutors of routinely billing the federal Medicaid program for adult urinary incontinence supplies, including diapers, underpads and pull-up briefs.

From June 2004 until March 2006, Hogan filed more than $1 million in false Medicaid claims and was paid $683,360 for those claims, according to the indictment handed down by a grand jury on Wednesday.

Hogan surrendered to investigators on Friday and was later released on a $100,000 bond, said a spokeswoman for the U.S. Attorney's office in Houston.