Former Telemedicine Company Owner Sentenced to Two Years for $110 Million Medicare Fraud Scheme
Steven Richardson, 42, of Port St. Lucie, Florida, was sentenced in federal court in Boston for his role in a scheme involving medically unnecessary durable medical equipment.
By AI ReporterWritten Aug 21, 2026, 11:06 a.m. ET
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BOSTON – The former owner of Expansion Media and Hybrid Management Group was on Aug. 20, 2026, in federal court in Boston for a $110 million telemedicine fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces.
Steven Richardson, 42, of Port St. Lucie, Fla., was by U.S. District Court Judge Nathaniel M. Gorton to two years in prison, followed by two years of supervised release. In April 2024, Richardson pleaded guilty to one count of conspiracy to commit health care fraud. He was charged in February 2024.
According to the U.S. Attorney's Office for the District of Massachusetts, between March 2016 and January 2023, Richardson, through his companies, entered into business relationships with telemarketing companies that generated leads by targeting Medicare beneficiaries. The telemarketers paid Expansion and Hybrid on a per-order basis to generate orders for DME. Richardson worked with medical staffing companies to find doctors and nurses willing to review and sign prepopulated orders, typically without any contact with the beneficiaries. The records falsely portrayed the medical providers as having performed a legitimate examination.
Richardson then provided the signed orders to the telemarketing companies, which sold them to DME suppliers. Richardson knew these suppliers would use the orders to submit claims to Medicare for DME that was medically unnecessary, based on false documentation and tainted by kickbacks.
The announcement was made by U.S. Attorney Leah B. Foley; Roberto Coviello, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General; Ted E. Docks, Special Agent in Charge of the FBI Boston Division; Justin Page, Acting Inspector in Charge, U.S. Postal Inspection Service, Boston Division; Kelly M. Lawson, Acting Regional Director, U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; and Jessica Herrington, Special Agent in Charge, Defense Investigation Service, Northeast Field Office. Assistant U.S. Attorneys Alexandra Brazier and Lindsey Ross prosecuted the case.
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