Medicare Brace Fraud: Two Florida Men Sentenced in $34.8M Scheme

Published: September 5, 2026

Last fact-checked: September 5, 2026

Current status: Kenneth Charles Kessler III and Michael Andrew Gomez have pleaded guilty and been sentenced to federal prison. No consumer refund or claims program was announced.

Two Florida durable medical equipment operators have been sentenced in a Medicare brace fraud case involving $34.8 million in false claims, according to the Justice Department. Kenneth Charles Kessler III received 33 months in prison and Michael Andrew Gomez received 24 months. DOJ says their companies billed Medicare for medically unnecessary orthotic braces, including braces sent to beneficiaries who neither requested nor needed them. The $34.8 million figure describes fraudulent billing, not an announced consumer loss or refund pool. Medicare beneficiaries who find an unfamiliar brace, supplier or equipment charge should compare the claim with their records and report suspected fraud through official Medicare channels.

What Changed in the Medicare Brace Fraud Case

The Justice Department sentencing release says Kessler and Gomez owned and operated seven Florida-based durable medical equipment, or DME, companies.

DOJ says they paid kickbacks and bribes to obtain fraudulent signed doctors’ orders, shipped unnecessary braces to Medicare beneficiaries nationwide and moved billing among their companies to evade Medicare payment suspensions.

The earlier September 2025 DOJ announcement said thousands of beneficiaries were targeted through deceptive telemarketing and that personal information was used to arrange purported telemedicine orders for unnecessary equipment.

What the $34.8 Million Does — and Does Not — Mean

The $34.8 million is the amount DOJ says was billed to Medicare through the fraudulent scheme. The sentencing announcement does not describe that figure as money owed directly to individual beneficiaries. It also does not announce a $34.8 million restitution fund.

DOJ separately says Kessler profited more than $1.4 million and Gomez more than $2.3 million. The release does not provide an individual payment formula or a consumer claims process.

How Medicare Beneficiaries Can Check an Unfamiliar Brace Claim

Medicare tells Original Medicare beneficiaries to compare receipts and bills with their Medicare Summary Notice. The notice lists services and supplies billed to Medicare, what Medicare paid and the maximum amount the beneficiary may owe. A secure Medicare account can also show processed Part A and Part B claims.

Medicare’s fraud and abuse guidance says people who suspect fraud can call 1-800-MEDICARE (1-800-633-4227) or use the official online reporting option. Medicare Advantage and Part D members can also contact I-MEDIC at 1-877-772-3379.

HHS-OIG has also published a nationwide brace scam alert. It warns that scammers may offer supposedly free braces, obtain Medicare information and bill for equipment that was not requested or medically necessary.

What Records Should Be Preserved

• The Medicare Summary Notice, plan Explanation of Benefits or secure-account claim record.
• The supplier name, service date, equipment description and billed amount.
• Receipts, appointment records and any legitimate prescription or doctor’s order.
• Notes from calls, including dates, names and confirmation or report numbers.
• Any unsolicited brace advertisement, text, email or caller information still available.

Who Is Not Automatically a Victim

The sentencing release does not publish a list of affected beneficiaries. Receiving a medically necessary brace through a legitimate supplier does not by itself connect a person to this case. An unfamiliar claim deserves verification but does not prove fraud by itself.

This sentencing also does not create a new Medicare benefit, change ordinary Medicare coverage rules or establish an automatic right to compensation. Beneficiaries should use Medicare’s official claim and fraud channels rather than responding to unsolicited callers offering recovery services.

What Happens Next

The major criminal milestone for Kessler and Gomez is sentencing. Fiscal Wire News should update this report if DOJ announces a material post-sentencing development, a case-specific victim process, restitution information or another official action affecting Medicare beneficiaries.

For phishing-related Medicare-number theft, see our MyChart Medicare Kit scam guide.

Bottom Line

The case moved from allegations to guilty pleas and prison sentences. For Medicare users, the durable lesson is practical: review claims for braces or other equipment you did not request, verify unfamiliar suppliers and preserve records before reporting suspected fraud through Medicare’s official channels.

Important information: This report provides general news and consumer education. It is not individualized legal, medical, insurance or financial advice, and it does not establish that any particular Medicare beneficiary was affected by this case.