Man pleads guilty in diaper fraud

April 6, 2010 4:53:20 AM PDT
A Houston man pleaded guilty to a health care scam involving more than 1 million units of diapers and other incontinence supplies. Fred Jessie Cole Jr. pleaded guilty in federal court Monday to 14 counts of health care fraud. Cole submitted false claims to the Texas Medicaid Program for diapers and briefs that weren't delivered to or wanted by Medicaid beneficiaries.

According to the plea deal, Cole submitted claims to Medicaid for 1.3 million units of diapers and briefs when he purchased only 314,000 units. State and federal officials say that between 2003 and 2006, Cole submitted approximately $1.1 million in claims and was paid nearly $940,000.

Cole remains free on bond and will be sentenced in August. He faces up to 10 years in prison and a $250,000 fine.


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