Ted Albin was sentenced to five years in prison for orchestrating a multimillion-dollar Medicare fraud scheme, according to a March 18 announcement by United States Attorney for the Southern District of New York, Jay Clayton. Albin was convicted on June 24, 2025, after a 12-day jury trial before U.S. District Judge John G. Koeltl, who imposed the sentence.
The case highlights ongoing concerns about healthcare fraud and its impact on public resources. Prosecutors say schemes like this increase healthcare costs and divert funds from seniors and disabled individuals who rely on Medicare.
“Ted Albin used fraudulent prescriptions to cheat Medicare out of millions,” said U.S. Attorney Jay Clayton. “Schemes like this cost every New Yorker, including by driving up healthcare costs and diverting resources from seniors and the disabled who need care. Today’s sentence makes clear that those who cheat Medicare will face serious consequences.”
According to court documents and evidence presented at trial, Albin operated Grapevine Professional Services, a medical billing company he used to submit fraudulent reimbursement claims for durable medical equipment such as back braces and knee braces between approximately 2016 and April 2021. The claims were submitted on behalf of DME supply companies that had hired Grapevine’s services, including several owned or controlled by Albin and his sister Erin Foley. Many of these claims were based on prescriptions obtained through kickbacks or forged doctor signatures without regard for patient need.
In total, the DME companies billed Medicare for over $38 million in fraudulent claims, with more than $12 million paid out by Medicare.
In addition to his prison term, Albin was sentenced to three years of supervised release. The court deferred calculation of restitution until a later date.
Clayton praised the investigative work of the U.S. Department of Health and Human Services – Office of Inspector General in bringing the case forward.
