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Texas man charged in $1 million adult diaper fraud
February 13, 2009 / 11:10 PM / 9 years ago

Texas man charged in $1 million adult diaper fraud

HOUSTON (Reuters) - The owner of a Texas medical supply company is charged with fraudulently billing the U.S. government for $1 million in adult diapers that customers never received, federal prosecutors said on Friday.

Ernest Hogan, 59, who ran Shanet Medical Source in Houston, is accused by federal prosecutors of routinely billing the federal Medicaid program for adult urinary incontinence supplies, including diapers, underpads and pull-up briefs.

From June 2004 until March 2006, Hogan filed more than $1 million in false Medicaid claims and was paid $683,360 for those claims, according to the indictment handed down by a grand jury on Wednesday.

Hogan’s lawyer could not immediately be reached for comment.

Hogan surrendered to investigators on Friday and was later released on a $100,000 bond, said a spokeswoman for the U.S. Attorney’s office in Houston.

Reporting by Anna Driver in Houston; editing by Todd Eastham

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