Troubled Scooter Company Facing Series of Problems

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.