In a significant verdict from Miami, two healthcare executives have been convicted by a federal jury for masterminding a $34 million fraud scheme that preyed on elderly Medicare Advantage beneficiaries, according to an announcement by the U.S. Department of Justice. The perpetrators, Michael Kochen, 42, and Sandro Herek, 56, were found guilty on Dec. 22, 2025, for peddling medically unnecessary durable medical equipment, such as braces for various body parts, exploiting the trust and vulnerabilities of senior citizens.
The DOJ reported that this elaborate scheme used deceptive telemarketing tactics, which involved persistent cold calls to beneficiaries who had never asked for such services, pressuring them into accepting equipment they neither needed nor wanted as evidence presented at trial demonstrated, and over $17 million was paid out by Medicare Advantage plans on these fraudulent claims, the orchestration was not just an attack on the healthcare system but a pointed exploitation of the elderly. In their cold call operations based overseas, representatives employed high-pressure strategies, misleading beneficiaries into believing they would not bear any costs for the unwanted braces.
Adding to the gravity of the scheme, “The jury saw through it. This verdict sends a clear message that schemes targeting seniors and abusing our healthcare system will be met with accountability and real consequences,” remarked U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida in a statement obtained by the Department of Justice. Physicians were also implicated, issuing medical authorizations for braces based on call recordings or templated justifications devoid of appropriate evaluations, in some cases, without even conversing with the patients…