A unique story popped up this week involving an Illinois man who recently pleaded guilty in Rhode Island to charges of fraud in connection the sale of penis enlargers. The man apparently sold the devices to diabetes and arthritis patients through Medicare.

In a plea agreement signed in September, the defendant pleaded guilty to two counts of health care fraud, money laundering and introduction of an adulterated or misbranded medical device into interstate commerce. Prosecutors have, though, agreed to recommend a less harsh sentence.

According to court documents, the man was accused of purchasing the devices from an adult website, repackaging them and then delivering them to diabetes patients based on claims that the pumps help with "bladder control, urinary flow and prostrate comfort."

Medicare does reimburse for products that treat organic impotence as well as erectile dysfunction, but such devices are required to be "medically necessary" and prescribed by a physician.

The defendant allegedly targeted Medicare beneficiaries through a medical equipment company he owns and operates in Buffalo Grove, Illinois. Patients were persuaded through telemarketing to provide the defendant their Medicare information by offering free medical equipment and supplies.

The devices were charged to Medicare for $284 each, totaling $370,305, according to law enforcement. Prosecutors argued that the devices served no medical purpose.

Another $1.8 million was defrauded in connection with reimbursements for arthritic packages the defendant claimed Medicare beneficiaries and their patients ordered.

Because of the fraud scheme, the Illinois man faces as much as 33 years in prison and $760,000 in fines. He is set to be sentenced on February 10.

Source: Associated Press, "Ill. man admits to fraud in 'erectile pump' case," Laura Crimaldi, November 17, 2011.