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Houstonian in health care fraud must repay nearly $10M

Aghaegbuna "Ike" Odelugo gets 6 years in prison

Published On: Jan 30 2012 01:23:39 PM CST

HOUSTON -

A former Houston cell phone store owner-turned-concert promoter must repay nearly $10 million in a Medicare fraud investigation.

A federal judge in Houston on Monday also sentenced 39-year-old Aghaegbuna "Ike" Odelugo of Sugar Land to six years prison.

Odelugo in 2010 pleaded guilty to conspiracy to commit health care fraud, committing health care fraud and money laundering. Prosecutors say Odelugo must make $9.9 million in restitution to the government program and forfeit nearly $7.5 million in illegal earnings.

Investigators say Odelugo, from mid-2005 through March 2008, had a bogus billing deal with more than a dozen durable medical equipment company owners. The operations were in Texas, Louisiana, Arkansas, Georgia, North Carolina, West Virginia, Delaware, Massachusetts, New Hampshire and Michigan.

Odelugo ran the billing scam from his now-closed cell phone store.

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