MIAMI, Fla. – A Palm Beach County man has been sentenced to prison for buying and selling over 2.6 million Medicare beneficiary identification numbers.
Charles William McElwee, 36, was sentenced in federal court to 41 months in prison following his earlier guilty plea to buying and selling the Medicare beneficiary identification numbers, along with other personal identifiers.
The prosecution is among the first to be brought under The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA), said the U.S. Attorney’s Office for the Southern District of Florida (USAO).
Among other things, MACRA makes it illegal to buy, sell, or distribute without lawful authority Medicare or Medicaid beneficiary numbers.
As part of his plea, McElwee admitted that he and his co-conspirators used “data mining” and “social engineering techniques” to collect Medicare beneficiary information, which McElwee then advertised and sold online. The trafficked information included beneficiary names, addresses, dates of birth, social security numbers, and Medicare beneficiary identification numbers.
According to the indictment, some illicit transactions involved foreign actors, including sellers in the Philippines and buyers in Egypt.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Miami Region; and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the sentence.
HHS-OIG Miami and FBI Miami investigated the case. Assistant U.S. Attorney Jon Juenger prosecuted it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
Medicare beneficiaries who believe they have been a victim of medical identity theft can file a complaint with the HHS-OIG hotline by calling 1-800-HHS-TIPS (800-447-8477) or with the Centers for Medicare and Medicaid Services by calling 1-800-MEDICARE (1-800-633-4227).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 22-cr-60202.
