A pair of former salespeople for Integra LifeSciences (NSDQ:IART) pleaded guilty yesterday for their roles in a scheme to overbill hospitals that federal prosecutors allege bilked healthcare providers of some $800,000.
Daniel Metz, a regional manager and a product specialist, and Charles Carey, a product specialist, admitted to conspiracy to commit wire fraud charges in New Jersey, according to a press release from the U.S. attorney’s office there.
Metz, who worked for Plainsboro, N.J.-based Integra from July 2005 until he was fired in April 2013, admitted to using "various fraudulent methods" to overcharge hospitals and surgery centers, according to the release. He would charge for a greater quantity or a more expensive product than was actually used and taught other product specialists including Carey, an Integra employee from January 2009 until his April 2011 resignation, how to overbill as part of the scheme, according to the release.
Integra has reimbursed the hospitals for the fraudulent charges, prosecutors said. Metz and Carey agreed to repay $100,000 and $77,000, respectively, "representing the amounts of money they personally made through the fraud scheme," according to the release.
Metz and Carey each face a maximum sentence of 20 years in prison, plus a $250,000 fine or twice their gross gain from the fraud. Sentencing before Judge Joel Pisano of the U.S. District Court for New Jersey is slated for Jan. 20, 2015.