(WXIA) -- The vice president and chief financial officer of a medical equipment business admitted in federal court to defrauding several insurers, including Medicare and Blue Cross Blue Shield.
Daniel K. Lane Jr., 57, will be sentenced in November by a Georgia-based judge for his part in the scheme.
The defendant works for Compass Healthcare, a company that provides compression stockings to patients with certain medical conditions, such as edema and chronic venous insufficiency. Compass Healthcare is based in St. Louis, Mo., but has offices in several cities, including one at St. Joseph's Hospital in Atlanta.
Prosecutors said Lane and office manager Holly Keisker, 61, submitted false claims and diagnoses to insurance companies for patients who did not require compression stockings. The pair forged and altered doctors' prescriptions to support the claims.
Lane also rigged Compass Healthcare's billing system so it would automatically bill insurers for the company's most expensive stocking, regardless of the product ordered, according to prosecutors.
Keisker and Lane each pleaded guilty to one count of conspiracy to commit healthcare fraud. Keisker will be sentenced in December.