Lincoln man indicted in federal fraud case

2007-01-31T18:00:00Z Lincoln man indicted in federal fraud caseCLARENCE MABIN / Lincoln Journal Star JournalStar.com
January 31, 2007 6:00 pm  • 

A Lincoln businessman has been indicted in federal court on 29 charges arising from an alleged scheme to commit health care fraud.

Mark Allen Frederick, 38, owner of Mobility Specialists, doing business as the Scooter Superstore, 4237 O St., was charged with 18 counts of submitting fraudulent claims for motorized wheelchairs or accessories, and 11 counts of money laundering in the indictment, unsealed in U.S. District Court in Lincoln last month.

Frederick’s company sold motorized wheelchairs, accessories and other power operated vehicles and would be reimbursed by the federal Medicare Program, according to the indictment.

The indictment alleged, among other things, that Frederick submitted claims for wheelchairs and accessories, even though he knew the beneficiaries’ physicians had not completed the form indicating the equipment was medically necessary.

In addition, according to the indictment, Frederick allegedly submitted claims to Medicare for equipment that was of less value than what he billed to the program.

Frederick allegedly committed the acts described in the indictment between March 2002 and February 2005. He is scheduled to appear in federal court Wednesday.

According to a separate but related complaint filed by the U.S. Attorney’s Office in 2005, $4.7 million was deposited into a bank account of Mobility Specialists from July 1999 to January 2005. The majority of the funds were paid by Medicare for power wheelchairs and accessories, according to the filing.

Federal prosecutors filed the complaint in September 2005, after seizing properties — including vehicles and bank accounts — owned by Frederick and Craig Workman, also of Mobility Specialists. Workman has not been criminally charged in the investigation.

The properties included two 2003 Hummer H2 Utility vehicles and a 2003 Cadillac Escalade, two Mobility Specialist bank accounts and one account in the name of Workman.

A spokesman for the U.S. Attorney’s Office Thursday declined to way whether additional charges would be filed in the investigation.

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