On September 21, 2026, the United States Attorney’s Office for the Northern District of Georgia announced that Durable Medical Equipment (DME) supplier Crown Medical Solutions and its owners, Michelle and Philanzo King, had agreed to pay $825,000 to resolve allegations that they submitted false claims to Medicare for DME that was allegedly medically unnecessary or not properly prescribed. Crown supplied items including knee braces, heel stabilizers, and back braces and ceased operations in April 2019. The settlement states that the settlement amount is based on the defendants’ financial condition.
The DOJ alleged that the defendants knowingly submitted or caused claims for DME orders that lacked medical necessity or a proper physician order. The settlement agreement identifies seven HCPCS codes covering orthotic equipment and related components, placing both the clinical basis for an item and the validity of the underlying order within the covered conduct.
The investigation was triggered by the filing of a qui tam whistleblower complaint by Karen Martinelli, who will receive approximately $125,000 as part of the resolution. According to her public Linkedin page, Ms. Martinelli is a cardiac nurse affiliated with Wellstar Health System.
Compliance Takeaway
This settlement is a good reminder that DME suppliers should require claim-level verification of medical necessity and order validity before submission and should use exception reports to identify missing, expired, inconsistent, or non-patient-specific documentation. Regular audits should be conducted to ensure proper documentation and billing accuracy.
GWB represents healthcare providers in connection with government investigations and False Claims Act litigation. If you need assistance with such a matter, contact us today.
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