A Miami federal jury convicted two healthcare executives on Dec. 22, 2025, for their roles in a scheme that resulted in the submission of about $34 million in false and fraudulent claims to Medicare Advantage plans for medically unnecessary durable medical equipment, including back, knee, shoulder, and ankle braces.
According to court documents and evidence presented at trial, Michael Kochen, 42, and Sandro Herek, 56, targeted Medicare Advantage beneficiaries through deceptive telemarketing practices, pressuring elderly individuals to accept medical equipment they did not need — and in some cases, did not want. Over the course of the scheme, more than $17 million was paid by Medicare Advantage plans on fraudulent claims.
Kochen owned dozens of companies that sold durable medical equipment supplies, such as braces. Herek oversaw and directed overseas call centers, including in Egypt and other foreign jurisdictions, which aggressively cold-called Medicare beneficiaries without prior requests for services. Call-center representatives repeatedly contacted beneficiaries — often after initial refusals — and used high-pressure tactics to induce them to accept braces regardless of medical necessity. Marketing scripts falsely suggested that the braces would be provided at no cost to the beneficiaries.
“This case was simple at its core,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “The defendants exploited trust and age, using pressure tactics and fake medical justifications to push unnecessary equipment onto elderly patients who deserved better. 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.”
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Evidence further showed that physicians frequently issued standardized or boilerplate medical authorizations for braces based solely on call recordings rather than individualized medical evaluations. In many instances, doctors did not speak with beneficiaries at all. When calls did occur, they were often brief, lasted only minutes, and did not include a meaningful assessment of medical necessity. Kochen paid kickbacks to telemedicine companies to obtain prescription orders for braces for Medicare Advantage beneficiaries, which were then used to submit claims for unnecessary equipment.
Kochen was found guilty of one count of conspiracy to commit health care and wire fraud, six counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, and three counts of payment of health care kickbacks. Herek was found guilty of one count of conspiracy to commit health care and wire fraud, one count of health care fraud, one count of conspiracy to pay and receive health care kickbacks, and three counts of receiving health care kickbacks.
Kochen and Herek each face a maximum penalty of 20 years in prison for the conspiracy to commit health care and wire fraud conviction, 10 years for each health care fraud conviction, five years for the kickback conspiracy conviction, and 10 years for each substantive kickback-related conviction. The sentencing hearing in this case is scheduled for Mar. 25. A federal district court judge will determine sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Reding Quiñones; Acting Special Agent in Charge Ricardo M. Carcas of the U.S. Department of Health and Human Services, Office of Inspector General, (HHS-OIG), Miami Regional Office; and Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office, made the announcement.
HHS-OIG Miami and FBI Miami are investigating the case.
Assistant U.S. Attorneys Roger Cruz, David Turken and Robert F. Moore are prosecuting the case. Assistant U.S. Attorney Sandra Demici is handling asset forfeiture.
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