Cinnaminson Medical Device Distributor Stole Over $100K in Insurance Payments: AG

Cinnaminson, NJ -- A Cinnaminson-based distributor of medical devices has been charged with stealing more than $100,000 in insurance payments intended for two companies that made and marketed a device to clear patients’ airways, Acting Attorney General Robert Lougy and the Office of the Insurance Fraud Prosecutor (OIFP) said on Wednesday.

Loetta Karen Edwards, 46, owner of Edwards Medical DME, LLC, (Edwards Medical) in Cinnaminson, was indicted on one count of second-degree theft by failure to make required disposition of property received.

Edwards was a distributor of the “Frequencer,” a Canadian-made medical device that helps clear airways in patients with cystic fibrosis and chronic obstructive pulmonary disease, in Cinnaminson.

Police allege Edwards ordered the devices on behalf of individuals who paid for them through their insurance companies, and then process the insurance claims for the devices and receive the payments.

She would then remit a portion of the money to the device manufacturer, Dymedso, Inc., and a portion to Dymedso’s Ohio-based sales representative, Clinical Technology.

She is accused of stealing about $103,000 in insurance payments intended for the two companies.

The attached image of Loetta Karen Edwards was provided by the Attorney General’s Office