Florida Man Sold Medicare Enrollee ID Numbers for 12 Cents Each

A Medicare card.

A federal judge in the U.S. District Court for the Southern District of Florida has sentenced Charles William McElwee, the former CEO of Lead Junkies, to 41 months in prison in connection with charges that he sold Medicare beneficiary identification numbers for about 12 cents per ID number.

McElwee pleaded guilty to selling the Medicare ID numbers in January.

McElwee and prosecutors agreed that, if the case had gone to trial, prosecutors would have proved that McElwee had engaged in a conspiracy to buy, sell and distribute Medicare beneficiary ID numbers, according to a document filed with the court.

Representatives for McElwee were not immediately available to comment on the sentencing.

McElwee’s price for Medicare beneficiary ID numbers compares with an estimated 2017 price of $29 for an Australian Medicare card, according to The Guardian, and an estimated 2022 price of $17 for a hacked U.S. credit card number with the “card verification value” number, or three-digit security number, on the back of the card.

2.6 Million Medicare IDs Sold

McElwee formed Lead Junkies, a lead generation firm, in July 2021. He advertised online in December 2021 that he had Medicare data for sale.

A confidential source agreed to buy 83,000 Medicare beneficiary ID numbers from him for $8,000.

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