Texas Man Sentenced for $61.5M Telemarketing Fraud Scheme

DOJ News

Filed March 27th, 2026

Detected March 27th, 2026

Summary

The Department of Justice announced that Robert Leon Smith III was sentenced to 150 months in prison for a $61.5 million telemarketing fraud scheme targeting Medicare beneficiaries. Smith organized deceptive telemarketing campaigns and submitted false claims for unnecessary medical products.

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What changed

Robert Leon Smith III has been sentenced to 150 months in prison and two years of supervised release for his role in a $61.5 million health care fraud and wire fraud conspiracy. Smith owned and operated DME supply companies and a marketing company that conducted deceptive telemarketing campaigns targeting Medicare beneficiaries nationwide. He submitted millions of dollars in false claims for medically unnecessary orthotic braces, foot baths, and genetic tests, often obtained through kickbacks to telemedicine companies and the use of fake doctors' orders.

This enforcement action highlights the severe penalties for healthcare fraud and telemarketing schemes. Regulated entities involved in healthcare services, medical supplies, or telemarketing should review their compliance programs to ensure adherence to anti-fraud statutes and consumer protection regulations. Failure to comply can result in lengthy prison sentences, substantial restitution, and forfeiture of assets, as demonstrated by Smith's case.

What to do next

Review telemarketing scripts and practices for deceptive tactics.
Verify the medical necessity and beneficiary consent for all dispensed durable medical equipment.
Ensure compliance with anti-kickback statutes in all healthcare service arrangements.

Penalties

150 months in prison, 2 years of supervised release, $30,158,608.25 in restitution, forfeiture of $9,215,225 and real estate.

Source document (simplified)

News

Press Release

Texas Fugitive Apprehended and Sentenced to Over 12 Years in Prison for $61M Telemarketing Fraud Scheme Targeting Medicare Beneficiaries

Friday, March 27, 2026

Share For Immediate Release Office of Public Affairs A Texas man was sentenced Wednesday to 150 months in prison and two years of supervised release for organizing and leading a $61.5 million health care fraud and wire fraud conspiracy in which thousands of Medicare beneficiaries who were the victims of deceptive telemarketing were sent thousands of orthotic braces, foot baths, and genetic tests they did not need.

According to court documents and evidence presented at trial, Robert “Bobby” Leon Smith III, 50, of Archer City, Texas, owned and operated seven durable medical equipment (DME) supply companies based in Florida, Texas, and Maryland through which he submitted millions of dollars in false claims to Medicare for orthotic braces and foot baths that beneficiaries did not need.

Smith also owned a marketing company based in Texas that he used to conduct deceptive telemarketing campaigns that targeted Medicare beneficiaries for medical services they did not need. Working with an offshore call center located in the Philippines, Smith and his co-conspirators peddled medically unnecessary orthotic braces, foot baths, and genetic tests to Medicare beneficiaries nationwide. In audio recordings presented at trial, Smith was heard pressuring beneficiaries to accept these products even after the beneficiaries protested that they did not need or want them.

Smith obtained doctors’ orders for these products by paying kickbacks and bribes to illegitimate telemedicine companies. He then sold these doctors’ orders to other medical suppliers that he knew used them to submit false and fraudulent claims to Medicare. In another recording presented at trial, Smith was heard complaining about instances in which he bought doctors’ orders he could not sell, calling the orders “trash” and “junk.” Smith’s former business partner testified that they eventually began using “fake” doctors’ orders that contained forged signatures of doctors who were unaware of the scheme.

After four days of a jury trial, Smith pleaded guilty in March 2025 to one count of conspiracy to commit health care fraud and wire fraud and one count of health care fraud. Smith absconded and failed to appear for sentencing. He remained at large for over a month before he was apprehended by the U.S. Marshals Service. At sentencing, the Court ordered Smith to pay $30,158,608.25 in restitution and to forfeit $9,215,225 as well as real estate located in Texas.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division; Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Brett Skiles of the FBI Miami Field Office made the announcement.

HHS-OIG and FBI investigated the case.

Trial Attorney Owen Dunn of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of eight strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Updated March 27, 2026 Topic Health Care Fraud Components Criminal Division Criminal - Criminal Fraud Section Federal Bureau of Investigation (FBI) Press Release Number: 26-295