State Comptroller Uncovers Phony Medicaid Claims For Sneakers [AUDIO]

The State Comptroller claims a Camden shoe store tried to get away with some sneaky sneaker sales; phony Medicaid claims that the sneakers were orthopedic shoes.

State Comptroller Matt Boxer says Shapiro's shoes in Camden submitted hundreds of claims for orthopedic shoe sales for Nikes and Converse sneakers, and Medicaid "footed" the bill to the tune of more than $36 thousand.

OSC's investigation, conducted by its Medicaid Fraud Division, determined that Shapiro's billed the Medicaid program for high-top Nike sneakers, Timberland boots and other shoes that were not eligible for Medicaid reimbursement.

According to its notice of claim, OSC reviewed more than 300 reimbursement claims from Shapiro's Shoes and found that they each lacked the appropriate supporting documentation.

Boxer says the store did not have any orthopedic equipment in-house. They used a simple ruler to measure customer's feet. An on-site visit by OSC investigators found that Shapiro's Shoes did not even keep orthopedic shoes in stock Boxer says the state is seeking additional recoveries from the company in the form of penalties for each of the alleged claims, that the Comptroller says sought to scam the Medicaid program.

• Read the full Comptroller Report

While the owner of Shapiro's Shoes told OSC investigators that the high-top Nike sneakers the store dispensed were authorized orthopedic footwear, a Nike official told OSC that the company does not manufacture a high-top corrective basketball shoe.

Boxer says the shoe's on the other foot now, and the State wants $2.5 million in recoveries and penalties from Shapiro's owner.