Business ProfileforRegency, Inc.

Gov. Action
On Friday, November 5, 2021 U.S. District Judge Virginia M. Hernandez Covington has sentenced Michael Nolan (48, Tampa) and Richard Epstein (29, Aurora, CO) for their roles in a conspiracy to defraud federal health benefit programs, Medicare and the Civilian Health and Medical Program of the Department of Veterans Affairs ("CHAMPVA"). For more information you may view Case no. 8:20-cr-196-T-33AAS with United Stated Disctict Court, Middle District of Florida Tampa Division, or visit https://www.justice.gov/usao-mdfl/pr/two-sentenced-federal-prison-health-care-fraud.

Nolan was sentenced to six years and six months in federal prison, followed by three years of supervised release. Epstein was sentenced to five years and three months in federal prison, followed by three years of supervised release. As part of their sentences, the court also entered a money judgment against each defendant in the amount of $2.1 million and $3 million, respectively, which were proceeds of the conspiracy. Noland and Epstein were also ordered to pay restitution, jointly and severally with each other and other conspirators, in the amount of $29,020,304. Richard Epstein did knowingly and willingly combine, conspire, confederate, and agree with Michael Nolan, Kelly Wolfe, Schuyler Poppe, Patsy Truglia, Ruth Fernandez, Mark Allen and others to commit health care fraud.

Nolan and Epstein each had pleaded guilty on July 31, 2020.

According to court documents, from around October 2016 through around April 2019, Epstein and Nolan ran a telemarketing company in Tampa called REMN Management LLC that targeted the elderly to generate thousands of medically unnecessary physicians' orders for durable medical equipment ("DME") and cancer genetic testing ("CGx"). Epstein and Nolan also created and operated Comprehensive Telcare, LLC, a "telemedicine" company through which they illegally bribed physicians to sign the orders regardless of medical necessity. Epstein and Nolan then illegally sold the signed physicians' orders to client-conspirators for use as support for false and fraudulent claims submitted to Medicare and CHAMPVA. The conspiracy resulted in the submission of at least $134 million in fraudulent claims to the federal health benefit programs, resulting in approximately $29 million in payments.

Richard Epstein, Michael Nolan and other conspirators are collectively known as the REMN Faction, the purported marketing company serving DME and CGx industries. Comprehensive Telecare, LLC was formed in 2018 and integrated with REMN marketing operations, offering serivces to third parties including Patsy Truglia for a per-claim fee. When REMN and CompTel dissolved in or around March 2019 the REMN faction conspirators began operating Allure Health Management LLC, offering telemedicine services. The REMN Faction also controlled, owned, held financial interests in, and/or managed multiple DME supply companies, collectively the "DME fronts".

Regency, Inc., was a DME billing and consulting company owned and operated by Kelly Wolfe, Schuyler Poppe, and Michelle K., collectively known as the Regency Faction. Regency's consulting services included creation and sale of "turn-key" DME supply companies to clients, generally assisting with accreditation and Medicare-enrollment processes to establish DME fronts for the REMN Faction.

Mark Allen owned and/or controlled Archer Diagnostics, LLC was a marketing company that identified and solicited Medicare beneficiaries to receive CGx testing and provided CGx tests to laboratories. JL Management, LLC was a billing company that Allen and Epstein owned, operated, and/or controlled.

Acadian Diagnostic Laboratories, LLC and Laboratory A were a laboratories in Louisiana that provided diagnostic laboratory services, including CGx testing.

REMN Faction purchased personally identifying information or "PII", such as names, dates of birth, and/or Medicare numbers of Medicare aged population. The PII were purchased from known "lead generators". Call center representatives would call Medicare beneficiaries to inquire about their Medicare eligibility, health status and whether they wanted DME or CGx testing, then build orders transmitted through automation or electronic means to medical practitioners associated with telemedicine companies such as CompTel. REMN Faction conspirators illegally bribed medical practitioners to sign and prescribe orders for DME braces or CGx testing under the guise of "telemedicine", regardless of medical necessity. Often, the medical practitioners associated with those telemedicine companies would sign the DME brace and/or CGx testing orders without ever contacting the Medicare benificiaries, rather than using the required interactive audio and video telecommunications sysem for a compliant health consultation.

The REMN Faction, Regency Faction, and others created DME Fronts for the purpose of submitting illegal claims for DME braces to Medicare. Conspirators concealed from Medicare and other that Epstein held financial interests in the DME Fronts, using methods of concealment such as using straw owners for Medicare enrollment applications, corporate records, and other documents.