Feasterville Ambulance Company, Owners Charged in $2.5M Fraud Scheme

The United States Attorney's Office announced Wednesday that a Feasterville ambulance company cost the Medicare program more than $2.5 million due to fraudulent actions.

According to Action News, Aleksandr N. Zagorodony and Sergey Zagorodny, owners of MedEx Ambulance have been charged with a total of 41 counts involving health care fraud, false statements in connection with health care matters, wire fraud, and conspiracy, United States Attorney Zane David Memeger announced Wednesday.

The U.S. Attorney's office said that the ambulance company and its owners transported patients who were able to walk and could travel safely on their own and without an ambulance. Therefore, the patients were not eligible for ambulance transportation under Medicare requirements.

As reported by Phillyburbs, Zagorodny brothers falsified reports to make it appear that the patients needed ambulance service, according to the indictment.

The company allegedly billed the ambulance services as if those services were medically necessary and, as a result of the allegedly fraudulent billing, the Medicare program paid more than $2.5 million for the transportation, Action News reported.

Sergey Zagorodny, 34, of Philadelphia, was arrested Wednesday morning.

Agents also seized four ambulances owned by MedEx Ambulance, purchased for over $200,000, that are subject to criminal forfeiture proceedings. Three bank accounts also were seized and the funds contained in those accounts are subject to criminal forfeiture proceedings.

Aleksandr Zagorodny is expected to surrender to law enforcement.

Matthew J. Bold, the former Director of Clinical Affairs for MedEx, 36, of Trevose, was separately charged with one count of health care fraud and aiding and abetting the commission of health care fraud, Action News reported.

Officials say Bold was involved in transporting and directing other MedEx employees to transport the patients by ambulance when those patients could walk or be transported safely by means other than ambulance.

If convicted, Aleksandr Zagorodny and Sergey Zagorodny face a substantial term of imprisonment, three years of supervised release, a fine of up to $10.25-million, mandatory restitution, and a $4,100 special assessment.

If convicted, MedEx faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations.

If convicted, Bold faces a maximum possible sentence of 10 years in prison, three years of supervised release, a fine of up to $250,000, restitution and a $100 special assessment.

All defendants could be excluded from participating in federal health care programs if convicted.