Gary Winner, a 49 year old man from Buffalo Grove Illinois, plead guilty last week for an unusual Medicare Scheme that involved shipping penis enlargers to Medicare recipients with Diabetes.
In total, this odd scheme, which took place for 4 years starting in 2005, was responsible for over $1 million dollars. The defendant, as part of his guilty plea, forfeited over $2 million dollars and faces more than 30 years in prison.
Winner, who admitted his part in this scheme, repackaged penis enlargers he bought from adult websites for around $30, claiming that they were used to help with prostate issues, bladder control, urinary flow, and erectile issues.
The penis enlargers original packaging was removed and were placed in plastic bags that included an instruction booklet with falsified information. According to prosecutors, Winner then billed Medicare almost $300 per unit, which netted almost $400,000.
Allegedly, Winner would then use his company, Planned Eldercare, which sold home medical equipment, to target Medicare Patients. Often, through the use of aggressive telemarketing to seniors, Winner would procure Medicare Account Numbers after he provided some free medical equipment federal prosecutors contend.
While Medicare does cover certain types of erectile dysfunction, like other types of Durable Medical Equipment, it must be prescribed by a doctor and required medically. Not only was Winner allegedly misrepresenting his products, he also was accused of purposely shipping medical equipment to patients that they did not need.