BY BEN L. KAUFMAN
The Cincinnati Enquirer
Lying to Medicare about diapers cost a Cleves man his freedom and millions of dollars Monday in U.S. District Court.
Marvin Thomas, 56, admitted defrauding taxpayers of at least $2 million through mail fraud and false claims.
Between May 1993 and June 1996, Mr. Thomas and his company supplied more than 300,000 disposable diapers to elderly patients and misrepresented them to Medicare as durable medical equipment, the government said. Medicare does not cover adult geriatric diapers.
Mr. Thomas also pleaded guilty on behalf of the company, USA Medical Systems Inc., to a charge of making false claims.
Monday, Judge Susan J. Dlott ordered $2 million restitution and a $7,500 fine and sent Mr. Thomas to prison for two years.
When he gets out, he faces three years of supervised release and 200 hours of community service.
Prosecutor Kathleen Brinkman said restitution is to come from Mr. Thomas' property, including his $500,000 home in Cleves, a $191,000 vacation home in Indiana's Ripley County, $125,000 from the sale of a lot in Cleves, four vehicles worth $133,000 and $968,000 in various accounts.
If his property adds up to more than $2 million, Ms. Brinkman said, the government will pursue it in a forfeiture procedure.
