A father-son team face a combined 15 years in federal prison after being convicted of fraud and identity theft in a scheme that targeted American Airlines employees.
Terry Lynn Anderson, 69, and his son Rocky Freeland Anderson, 38, had quite a scheme going. The Dallas pair were in the hearing aid business and would submit false claims on behalf (but without knowledge of) American Airlines employees, reaping the gains of insurance reimbursement. In most cases, the hearing aids were not needed. In many cases, the hearing aids were not even delivered.
Short, ineffectual tests, lasting less than five minutes, were administered in AA break rooms at Dallas Fort Worth International Airport (DFW). Employees were lured to these tests by free gift cards or premium sunglasses. Claims were then submitted to Blue Cross and Blue Shield of Texas, the primary health care provider for AA employees.
Both men were convicted of health care-related fraud and aggravated identity theft.
Terry Anderson was sentenced to eight years in prison and must repay $13.7MN to Blue Cross and Blue Shield of Texas. His 300-acre ranch and $3.1MN in liquid assets were also seized. Rocky Anderson was sentenced to seven years and must repay back more than $8.4MN.
U.S. Attorney Erin Nealy Cox told The Dallas Morning News:
In flagrant disregard for the law, these defendants submitted claims for equipment they knew patients neither needed nor wanted, just to line their own pockets. This sort of fraud impacts healthcare costs for patients who actually need coverage, and we will continue to prioritize these cases.
What a scam…and so seemingly harmless too. Free ear test? Sure. Oh, good…my ears are fine. By misappropriating their identities and using false addresses, the Anderson team was able to slip under the radar for many years.