Crown Medical Solutions Paid $825,000 in Fraud Settlement
The company resolved allegations that it billed Medicare for medical equipment that was not medically necessary.
Updated on Sept. 21, 2026 in Healthcare
Live Poll
Do you trust that federal authorities are doing enough to prevent fraud in healthcare programs?
Crown Medical Solutions and its owners have paid $825,000 to resolve False Claims Act allegations regarding fraudulent Medicare billing. The settlement concludes a qui tam case involving the supply of durable medical equipment.
Why it matters
The settlement addresses claims that the company billed for equipment, such as braces, that was not properly prescribed or medically necessary. It highlights ongoing efforts by the government to recover funds lost to healthcare fraud through whistleblower actions.
The company agreed to pay a total of $825,000, with a whistleblower award of approximately $123,750 going to Karen Martinelli. This figure was calculated based on the defendants' ability to pay.
The players
Crown Medical Solutions
This is the company that supplied durable medical equipment and faced allegations of submitting false claims to Medicare.
Karen Martinelli
She is the whistleblower who filed the qui tam case on behalf of the United States.
The details
The allegations centered on the company's billing practices for durable medical equipment including knee, back, and heel stabilizers. The case, filed under the False Claims Act, alleged that these items were provided without proper prescriptions or medical justification.
Timeline
November 1, 2017: The period of alleged fraudulent billing began.
April 30, 2019: The period of alleged fraudulent billing ended.
September 21, 2026: The Department of Justice announced the settlement.
Market Landscape
This settlement follows the enforcement patterns established by the False Claims Act, which empowers private citizens to bring litigation against entities accused of defrauding federal programs. It reflects a broader industry trend where federal authorities leverage qui tam actions to police billing compliance in the durable medical equipment market.
While this settlement does not change retail pricing for consumers, it underscores the importance of verifying that prescribed medical equipment is both necessary and properly authorized. Patients concerned about potential billing irregularities can report suspicious activity to the HHS fraud hotline at 800-447-8477.
The takeaway
Whistleblower actions remain a critical tool for identifying and resolving fraudulent billing practices within the medical supply chain. Residents should ensure that all equipment they receive is validated by their healthcare provider to avoid unnecessary insurance claims.
Further reading
For more context on how authorities monitor medical billing, visit the Healthcare section.
Live Poll
Do you trust that federal authorities are doing enough to prevent fraud in healthcare programs?
