Jay Clayton, the United States Attorney for the Southern District of New York, announced that Alan Swiss has been sentenced to 42 months in prison for his role in a multimillion-dollar Medicare fraud scheme. Swiss pled guilty on January 22, 2025, and was sentenced by U.S. District Judge John G. Koeltl.
“Swiss defrauded Medicare through creating, purchasing, and selling millions of dollars’ worth of false prescriptions for medical equipment,” said U.S. Attorney Jay Clayton. “Fraud of this kind not only wastes taxpayer dollars but also drives up the cost of healthcare for all. Today’s sentencing sends a clear message: individuals who cheat Medicare will face justice.”
From 2016 to April 2019, Swiss operated Tropical Medical Marketing, Inc., a call center that used Medicare beneficiaries’ personal and medical information without their consent to prepare prescriptions for durable medical equipment (DME). These prescriptions were sold to co-conspirators who forged health care providers’ signatures to submit fraudulent claims to Medicare.
Between 2017 and April 2019, Swiss also ran two DME supply companies: Modern Medical Equipment, Inc., which billed Medicare Part B directly, and A&E Medical, Inc., which billed private insurance under Medicare Part C or “Medicare Advantage.” Swiss obtained DME prescriptions through illegal methods and submitted claims totaling over $18 million via a billing company operated by co-defendants Erin Foley and Ted Albin. Medicare paid nearly $6 million on these claims.
In addition to his prison sentence, Swiss was ordered to serve three years of supervised release and pay restitution amounting to $6,650,929.76 to Medicare. He must also forfeit an equivalent sum.
Mr. Clayton commended the investigative work conducted by the U.S. Department of Health and Human Services – Office of Inspector General.
The case is being managed by the Complex Frauds and Cybercrime Unit with Assistant U.S. Attorneys Rushmi Bhaskaran, Jackie Delligatti, Brandon Thompson, and William Kinder leading the prosecution.
