FBI offers N250 Million reward for fugitive behind $1.2bn Medicare fraud scheme

The Federal Bureau of Investigation (FBI) has announced a reward of up to $150,000 (about N250 million) for information leading to the arrest and conviction of Herbert Leon Kimble, a convicted fraudster accused of masterminding a healthcare fraud scheme that generated more than $1.2 billion in fraudulent Medicare charges.

According to information released by the FBI, Kimble was last known to be residing in Manila and is currently wanted after failing to appear for a scheduled sentencing hearing in the United States.

Investigators said Kimble played a key role in a large-scale healthcare fraud conspiracy that exploited the Medicare system through the improper marketing and distribution of durable medical equipment (DME), particularly orthopedic braces.

Authorities alleged that between 2014 and March 2019, he operated a sophisticated call-centre network that served as the marketing arm of a nationwide fraud operation involving telemedicine providers, DME suppliers and orthopedic brace distributors.

The scheme allegedly targeted Medicare beneficiaries, convincing them to request orthopedic braces for pain relief. Many of the braces were reportedly medically unnecessary and prescribed through telemedicine consultations conducted without proper medical evaluation.

According to investigators, the prescriptions were then sold to DME companies, while suppliers linked to Kimble shipped the braces and billed Medicare for reimbursement.

The FBI said the operation generated more than $1.2 billion in Medicare charges and affected thousands of beneficiaries, many of them elderly Americans.

Court records show that on April 4, 2019, Kimble pleaded guilty before the United States District Court for the District of South Carolina to conspiracy-related offences, including defrauding the United States, making false claims to a federal department, mail fraud, wire fraud, healthcare fraud, and offering kickbacks and bribes.

However, he failed to appear for sentencing on August 27, 2024. Following his absence, federal authorities issued an arrest warrant and charged him with failure to appear.

The FBI has urged anyone with information on Kimble’s whereabouts to contact the agency, the nearest American embassy or consulate, or submit information through its official tip channels.

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