Man Accused in $26.5M Medicare Fraud Arrested in St. Thomas, Released on $4M Bond

Accused of masterminding a scheme that bilked Medicare, Medicare Advantage, and TRICARE out of over $26.5 million, Chad Monroe was arrested in St. Thomas and released on a $4 million bond pending extradition to Florida for federal prosecution.

A man wanted in Florida on fraud and conspiracy charges was arrested in St. Thomas on Wednesday.

Chad Monroe stands accused of conspiracy to commit healthcare fraud and mail fraud, soliciting and receiving healthcare kickbacks, mail fraud, wire fraud, and conspiracy to defraud the United States.

The charges stem from an alleged scheme whereby Monroe and several co-conspirators submitted fake claims to Medicare and TRICARE for medical devices and genetic testing.

A grand jury indictment alleges that Monroe and others created multiple companies while deliberately hiding Monroe's involvement, managerial control, and ownership interest from federal agencies.

Through these companies, Monroe and his co-conspirators allegedly offered kickbacks and bribes to telemedicine companies to have them issue doctor's orders for durable medical equipment – items including orthotics, walkers, canes, etc. The kickbacks, prosecutors say, were concealed via “sham contracts” and “fraudulent invoices” meant to give the veneer of legitimacy to the transfers of funds.