Kittery business Seacoast Sleep Solutions and its president, Peter Enzinger, have pleaded guilty to defrauding insurance carriers of about $220,000.
Enzinger yesterday pleaded guilty in U.S. District Court to billing insurance carriers for products that were never delivered, were more expensive than those actually delivered and for equipment patients returned, according to the Portland Press Herald. The company, which provides sleep therapy and home oxygen products, also entered a guilty plea. Enzinger faces up to 10 years in prison and a fine of up to $250,000. The company faces a maximum fine of $500,000. Restitution must also be paid to the carriers. In July, Massachusetts-based Cape Medical Supply acquired Seacoast Sleep Solutions for an undisclosed price and renamed it Seacoast Respiratory.
Also in July, Enzinger was convicted of making false statements on a 2009 application for a $1.3 million Small Business Administration loan. He indicated he had never been charged with, arrested for or convicted of any criminal offenses, but he had four convictions in Massachusetts under the surname Shays, according to the paper. He has not yet been sentenced.