Texas Fugitive Sentenced to 12 Years in Prison for Directing 61 Million Dollar Medicare Telemarketing Fraud Conspiracy

Robert Leon Smith III receives a 12 year prison sentence for a 61.5 million dollar Medicare fraud scheme involving deceptive telemarketing and kickbacks.

By: AXL Media

Published: Mar 27, 2026, 9:28 AM EDT

Source: The information in this article was sourced from Office of Public Affairs, U.S. Department of Justice

Sentencing of Ringleader Following Fugitive Apprehension

A federal court has sentenced 50 year old Robert “Bobby” Leon Smith III to over 12 years in prison, marking the conclusion of a high profile health care fraud investigation. Smith, who briefly became a fugitive after failing to appear for his original sentencing date in 2025, was apprehended by the U.S. Marshals Service before facing a judge on Wednesday. In addition to the prison term, the court ordered the Archer City resident to serve two years of supervised release and pay over 30 million dollars in restitution for his role as the primary architect of the criminal enterprise.

Orchestration of Deceptive Offshore Telemarketing Campaigns

Evidence presented during the four day trial revealed that Smith utilized a Texas based marketing company to coordinate aggressive telemarketing efforts targeting vulnerable Medicare recipients. Working in tandem with an offshore call center in the Philippines, the conspiracy successfully pressured thousands of beneficiaries into accepting orthotic braces, foot baths, and genetic testing kits they did not require. Audio recordings captured Smith explicitly instructing staff to push products even after patients protested, illustrating a calculated effort to prioritize profit over medical necessity and patient consent.

Exploitation of Medical Supply Companies and Forged Credentials

The fraudulent operation relied on a network of seven durable medical equipment supply companies owned by Smith across Florida, Texas, and Maryland. To facilitate the billing process, Smith paid illegal kickbacks and bribes to illegitimate telemedicine firms to secure the necessary doctor orders. Testimony from a former business partner indicated that the scheme eventually devolved into the use of "fake" orders featuring forged signatures of physicians who had no knowledge of the patients or the equipment being prescribed in their names.