Oregon's $23 Million Medicare Fraud Case Shakes Medical Brace Industry

Pompano Beach, Florida, USA - In a shocking revelation shaking the foundations of the healthcare system, two Canadian men, David Kitchen Franklin and Edward Alan Huycke, find themselves at the center of a massive Medicare fraud case based in Oregon. The duo, who co-owned three medical brace companies, is accused of masterminding a scheme that siphoned off over $23 million from Medicare. This brazen act of deceit comes at a time when the federal government is ramping up its efforts to tackle healthcare fraud across the nation.

According to OregonLive, Franklin and Huycke have pleaded not guilty to a range of charges, including conspiracy to commit health care fraud, money laundering, and the payment of healthcare kickbacks. Their alleged fraudulent activities took place between 2019 and 2024, during which they billed Medicare over $44 million for orthotic braces that were deemed „medically unnecessary.“ The indictment suggests that they paid marketers substantial sums to secure these orders, some of which originated without proper doctor-patient relationships.

The Broader Context of Healthcare Fraud

This case is just a snapshot of a larger problem. Earlier this month, the U.S. Justice Department unveiled the results of the 2025 National Health Care Fraud Takedown, the largest of its kind in history. It led to charges against 324 defendants, including 96 medical professionals, for schemes that collectively sought to defraud the system of over $14.6 billion, as highlighted by OIG. This operation reflects a comprehensive collaboration among federal and state agencies that emphasizes the ongoing battle against healthcare fraud.

Among those charged in the Middle District of Florida were key figures involved in various forms of fraud, from kickbacks to staged traffic accidents. Names like William Balsamo, who is implicated in over $9 million in Medicare losses, highlight the extensive nature of the fraudulent activities taking place across the nation.

The Impact of Medicare Fraud

The implications of such fraudulent schemes hit beyond just the wallets of the Medicare program. According to Justice.gov, the Centers for Medicare and Medicaid Services (CMS) played a vital role in preventing over $4 billion from being paid out in false claims during this takedown initiative. This is just one example of how vigilant oversight can help mitigate the damage caused by fraudulent practices.

With a trial for Franklin and Huycke tentatively scheduled for July 29, the government has already assembled a formidable case, boasting multiple cooperating witnesses and ample evidence, including recordings and documents. They face serious penalties if convicted, including more than a decade behind bars and the forfeiture of fraudulent proceeds. Their operation extended not only through Oregon but also reached as far as Florida and Nevada, involving multiple shell companies with dubious practices.

The ongoing crackdown sends a clear message: healthcare fraud is being taken seriously, and those who engage in such activities can expect the full force of the law. Ensuring the integrity of healthcare systems is imperative, not just for the sake of financial accountability but for protecting the vulnerable populations who rely on these services. As the saying goes, there’s something to be said for keeping the system honest.

Stay tuned for updates as this case unfolds, and remember—defendants are presumed innocent until proven guilty.