Two healthcare executives were sentenced to federal prison for orchestrating a massive medical fraud operation that bilked the U.S. government out of $127 million through a scheme involving unnecessary medical braces and illegal kickbacks. The sentencing took place in federal court in Newark, marking the conclusion of one of the more brazen cases of healthcare fraud in recent years.
Eric Karlewicz, 46, of Rockland County, New York, and Nicco Romanowski, 33, of Roswell, Georgia, were the owners and operators of Empire Pain Center Holdings, a medical marketing company based in Eatontown, New Jersey. Between June 2017 and May 2019, they ran a sophisticated and coordinated scam that exploited the healthcare system, particularly targeting Medicare and other federal healthcare programs. The pair collaborated with telemedicine firms, doctors, and durable medical equipment providers to submit false insurance claims for orthopedic braces, such as those for the back, knee, and shoulder. These medical devices, while sometimes necessary for patient treatment, were often pushed onto individuals who neither needed nor requested them. Karlewicz and Romanowski used aggressive phone campaigns to contact patients directly, pressuring them into accepting the braces. Many patients received devices without ever having spoken to a doctor, much less having undergone a medical evaluation. The fraudulent prescriptions were generated through telemedicine companies that were paid by Karlewicz and Romanowski. In turn, those telemedicine companies offered payments to physicians who would sign off on brace prescriptions without conducting any actual patient consultations.
Federal prosecutors noted that this arrangement clearly violated multiple healthcare fraud and anti-kickback statutes. Physicians involved were essentially rubber-stamping prescriptions in exchange for compensation, regardless of whether the braces were medically necessary. The two men funneled more than $63 million in referral fees through their company and submitted false claims totaling over $127 million. The proceeds from this fraud funded an extravagant lifestyle. According to court records, Karlewicz and Romanowski used the illicitly obtained funds to purchase luxury vehicles, including a Ferrari, a Lamborghini, a Bentley, and a BMW. These extravagant purchases were made at the height of the scheme, underscoring the brazenness with which the two exploited the federal healthcare system.
The consequences were steep. Karlewicz received a prison sentence of 51 months and was ordered to forfeit $63 million. Romanowski was given a harsher sentence of 80 months and must forfeit $5.5 million. Together, the two must repay the full $127 million in restitution to the federal government. This restitution is meant to recover the funds that were siphoned through fake claims and fraudulent practices during the two-year scheme. Federal officials emphasized that the case is part of a broader crackdown on healthcare fraud, particularly scams that exploit telemedicine and vulnerable patients. Over the last several years, similar schemes have surfaced across the country, many of them relying on the growing use of remote healthcare services. The pandemic-era expansion of telemedicine has further highlighted both the promise and the potential for abuse within the system.
This case illustrates the vulnerability of federal health programs to coordinated fraud efforts, especially when unscrupulous actors take advantage of regulatory gray areas. What makes this case particularly striking is not just the amount of money involved, but the methodical way in which the scheme was orchestrated—from patient targeting and prescription fraud to kickbacks and luxury spending. Healthcare fraud continues to be a major priority for federal prosecutors, especially as the healthcare industry increasingly shifts toward digital and remote platforms. With the sentencing of Karlewicz and Romanowski, authorities hope to send a strong message to others operating in the industry that fraud and abuse will be met with significant legal consequences.
The fallout from the scheme extends beyond financial restitution. Cases like this erode public trust in the healthcare system and place additional strain on already stretched federal programs. While the two men will now serve their time in federal prison, the broader challenge remains: how to secure the integrity of healthcare services in an era where technology and opportunism often collide.
