Joshua Miller, 37, is indicted of selling state workers ear buds and sound suppression ear plugs, then charging the state insurance plan by falsely declaring the items as medically-necessary hearing aids, according to a media release published by the New York State Inspector General.
Hearing aids can cost as much as three to ten times more than regular ear buds or sound suppression ear plugs. The latter two also lack the sound amplification functionality of hearing aids.
"This business owner's scheme lured hundreds of state employees into his criminal enterprise, which was breathtaking in its scope, duration and pretense," said Catherine Leahy Scott, inspector general.
Miller supposedly paid off a corrections officer $70,000 to refer hundreds of state workers to one of his stores in central New York. From his three stores, he promised workers "hi-tech gadgets with no out-of-pocket expenses." While he handed out ear buds and sound suppression plugs that lacked the functions of hearing aids, he billed the state $3,000 per customer. The ear buds he gave to his customers were not actually eligible for coverage on most insurance plans.
His scheme ran from May 2012 to December 2014, managing to swindle $1.6 million from the state’s insurance plan. The ruse was finally unveiled during a routine audit, when a manager discovered that there was a huge rise in deaf workers in Syracuse.
