A Texas man who vanished for a month to avoid facing the music for a massive Medicare scam is now headed to federal prison for more than 12 years. Robert “Bobby” Leon Smith III, 50, was sentenced Wednesday to 150 months behind bars followed by two years of supervised release. The Archer City resident stood at the center of a $61.5 million conspiracy that flooded elderly patients with medical gear they never asked for and didn’t need.
The scheme relied on a network of seven medical supply companies across Florida, Texas, and Maryland. From these hubs, Smith funneled millions in fraudulent claims to Medicare for orthotic braces and foot baths.
Evidence presented during his trial revealed a high-pressure operation that utilized an offshore call center in the Philippines to target seniors nationwide. In audio recordings played for the jury, Smith was heard leaning on Medicare beneficiaries to accept products even after they told him they had no use for them.
To make the paperwork look legitimate, Smith paid kickbacks and bribes to shady telemedicine companies to secure doctor’s orders. He then flipped those orders, selling them to other suppliers who used them to drain Medicare funds.
READ: Florida Man Faces Death After Caging, Torture Charges In Brutal Murder Of 3-Year-Old
When he couldn’t find a buyer for certain files, Smith was recorded complaining about the “trash” and “junk” he was stuck with. His former business partner eventually testified that the group moved into outright forgery, using fake signatures from doctors who had no idea their names were being used.
The legal process took a dramatic turn in March 2025. After four days of trial, Smith pleaded guilty to conspiracy to commit health care fraud and wire fraud, along with a separate count of health care fraud. However, when his original sentencing date arrived, Smith was nowhere to be found. He remained a fugitive for over a month before the U.S. Marshals Service tracked him down and took him into custody.
In addition to his prison term, the court ordered Smith to pay back $30,158,608 in restitution. He was also forced to forfeit over $9.2 million in cash and various real estate holdings in Texas.
The investigation was a joint effort between the FBI’s Miami Field Office and the Department of Health and Human Services Office of Inspector General. The case was handled by the Justice Department’s Health Care Fraud Strike Force, a specialized unit that has charged thousands of defendants for similar schemes since 2007.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox
