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Federal Agents Raid The Scooter Store In Fraud Investigation

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NEW BRAUNFELS, Texas (CBS Houston/AP) — Dozens of law officers have raided the South Texas headquarters of The Scooter Score in an alleged fraud investigation.

Authorities were seen Wednesday carrying out a search warrant at the New Braunfels headquarters of the company that supplies power wheelchairs and scooters. Company officials didn’t immediately return messages for comment Thursday.

Timothy Menke with the Office of the Inspector General says the investigation involves his agency, plus the Department of Justice, the FBI and the Texas attorney general’s Medicaid fraud unit. An FBI spokesman declined comment on the nature of the investigation.

“I pray to God that everyone’s OK, and that they find employment if this place shuts down,” store employee Ed Silvestry said during the raid.

Former employees told CBS News last year that The Scooter Store’s main goal was to boost profits and not help patients.

“Bulldoze (doctors) and get them to get the paperwork done,” former employee Brian Setzer told CBS News.

Government auditors reportedly found that The Scooter Store overbilled Medicare by over $100 million from 2009 to 2012.

The Scooter Store earlier this month cut 150 jobs and blamed pending government changes in claims processing and reimbursement. The company last September laid off about 220 workers and again cited a drop in Medicare reimbursements.

(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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