Brad D. Schimel, United States Attorney for the Eastern District of Wisconsin, announced that on January 30, 2026, United States District Judge J.P. Stadtmueller sentenced Bruce Johnson (age 72) to 18 months’ incarceration for conspiracy to pay healthcare kickbacks, in violation of the Anti-Kickback Statute (AKS).
Johnson and his co-defendant, Michael Comino, owned Kestrel Medical LLC, a company in Oconomowoc, Wisconsin, that supplied durable medical equipment (DME), including orthotic devices such as braces for ankles, knees, backs, and shoulders. Johnson signed certifications on behalf of Kestrel stating that he would abide by all Medicare laws and regulations, including the AKS. In 2018, Johnson began paying kickbacks to multiple companies purporting to provide marketing services to Kestrel. The payments to the companies were for signed prescriptions for DME that Kestrel submitted to Medicare.
In February 2020, Comino became a fifty percent owner of Kestrel, which continued to offer and pay kickbacks for signed doctors’ orders. As a result of the conspiracy, Medicare paid over $2 million to Kestrel. Prior to Kestrel’s bankruptcy proceeding, Johnson also made two transfers totaling $150,000 to one of Comino’s companies as a way to divest Kestrel of assets.
At sentencing, Judge Stadtmueller noted the serious nature of Johnson’s criminal conduct and the need to deter others who might commit similar offenses. Judge Stadtmueller also ordered Johnson to serve three years on supervised release after his prison term and to pay over $2 million in restitution to Medicare. Johnson’s co-defendant, Comino, pled guilty to the same charge last year and was sentenced to 22 months’ imprisonment, as well as supervised release and restitution.
U.S. Attorney Schimel stated, “Fraudsters like these are stealing directly from all of us out of utter greed. As our nation debates how to make health care affordable, a critical first step is to stop fraud. Federal investigators and prosecutors have made it a top priority to get those who commit public benefits fraud locked up.”
“Mr. Johnson and his co-conspirator devised a scheme to defraud the American people. This sentencing and restitution order sends a clear message that healthcare kickback schemes will not be tolerated,” said FBI Milwaukee Special Agent in Charge Alan Karr. “The FBI will continue to work with our law enforcement partners to combat and prevent healthcare fraud.”
The Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General, investigated the case, which Assistant U.S. Attorney John Scully prosecuted.
