Raymond Lee, 51, owner of Houston-based DME Express, was sentenced Friday to 12 years in federal prison for orchestrating a $59 million Medicare fraud scheme involving unnecessary durable medical equipment (DME) and illegal kickbacks.
Lee paid $1,500 to $3,000 per month to telemedicine companies in exchange for pre-signed orders for power wheelchairs, hospital beds, and other DME — regardless of medical necessity. He then billed Medicare for the equipment, often at inflated rates. Prosecutors said Lee personally profited by at least $18 million between 2019 and 2024.
The scheme was uncovered after a Medicare audit revealed that Lee's company had the highest per-patient DME billing rate in Texas, despite having no physical therapy staff to assess patient needs.
Wider investigation ongoing
Lee was also ordered to pay $59 million in restitution and forfeit $18 million in assets, including a ranch, multiple luxury vehicles, and cryptocurrency accounts. Two telemedicine doctors who signed fraudulent orders have pleaded guilty and are cooperating with prosecutors.
'Raymond Lee treated Medicare like his personal ATM,' said U.S. Attorney Alamdar Hamdani. 'He will now have more than a decade to think about the patients who were denied care because of his greed.'
Raymond Lee treated Medicare like his personal ATM. He will now have more than a decade to think about the patients who were denied care because of his greed.
Lee's wife, who managed the company's finances, pleaded guilty to conspiracy and is scheduled for sentencing in May.
