Raid Caps Troubled Period for Scooter Store

Monday, Feb 25, 2013  |  Updated 5:24 PM CDT
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Raid Caps Troubled Period for Scooter Store

Getty Images/Huntstock

Low section of a handicapped man in a scooter and woman standing with cane.

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Residents in a Central Texas county are wondering about the future of one of its largest employers -- a troubled power wheelchair and scooter company -- after the firm's headquarters was raided this month as part of an investigation into alleged fraud.

The San Antonio Express-News reports the raid capped a tumultuous period for The Scooter Store, known for its ubiquitous television ads.

The New Braunfels, Texas-based company earlier this month cut 150 jobs, blaming pending government changes in claims processing and reimbursement. The company in September laid off about 220 workers, citing a drop in Medicare reimbursements.

In December, two U.S. senators questioned why The Scooter Store had received as much as $87.7 million in Medicare overpayments.

Scooter Store officials have denied wrongdoing and defended their business practices.

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