Health Care Fraud Blog

On April 2, 2008, U.S. District Court Judge Adalberto Jordan of the Southern District of Florida sentenced defendant Michael Labrada, 27, of Miami to a 97 month prison term and Miguel Castillo, 42, of Miami, to a 57 month prison term for their participation in a multi-million dollar health care fraud and money laundering scheme.

Labrada was convicted of conspiring with Angel Castillo, Jr. to commit health care fraud by serving as a straw owner of a medical equipment company known as JJ & D Medical Equipment, Inc. The company submitted more than $6.8 million dollars in bogus claims and received approximately $1.6 million in payments. In the second case, Labrada was convicted of money laundering charges in connection with a $2.3 million laundering scheme orchestrated by his co-defendant, Angel Castillo, Jr.

Miguel Castillo was also convicted of related health care fraud and money laundering conspiracy charges. In addition to serving as a straw owner of a medical equipment company, Miguel Castillo collected hundreds of thousands of dollars in fraud proceeds from check cashers at the direction of his cousin and co-conspirator, Angel Castillo, Jr.

Continue reading "Two Florida Men Sentenced for Healthcare Fraud & Money Laundering" »

Posted by Robert David Malove | Permalink | Email This Post

Posted In: Durable Medical Equipment Fraud , Medicare Fraud , Money Laundering

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Yeleiny Guerrero was the co-owner of Denis Medical Services, Inc. She was charged in a 6 count indictment with conspiracy to defraud the United States by causing the filing of false Medicare claims, conspiracy to commit health care fraud and 4 counts of health care fraud. Her codefendants were Ramon Oscar Soto, Araelia Nieto and Rafael Moreno. Soto was the leader of the charged conspiracy which involved three separate DME companies: P & A Medical, ROS Medical and Denis Medical Services. Nieto and Moreno were co-owners of the other two DME companies. All three of them pleaded guilty and were sentenced to time in the federal pokey: Moreno 18 months, Nieto 24 months and Soto 37 months.

The evidence at trial demonstrated that Guerrero established the corporation in her name, opened a bank account as the sole signatory, applied for all state and federal licenses and signed the Medicare Supplier Application so as to obtain a provider number. She worked at the office in a warehouse district daily from 8 am to 12 noon.

Continue reading "Defendant Acquitted of Healthcare Fraud " »

Posted by Robert David Malove | Permalink | Email This Post

Posted In: Durable Medical Equipment Fraud , Health Care Fraud , Medicare Fraud

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On September 6, 2007, Gianni Suarez Vazquez, a participant in a massive Medicare fraud scheme, pled guilty in federal court in West palm Beach, Florida, to mail fraud and money laundering charges. He is scheduled to be sentenced before U.S. District Judge Donald M. Middlebrooks on November 15, 2007.

According to the court records, between November 2003 and August 2004, Suarez Vazquez incorporated or set up two medical equipment companies, GK Medical, Inc. and Suplident International Corporation, in Palm Beach County. Thereafter, he obtained Medicare provider numbers for both companies to enable the companies to submit claims directly to Medicare. To conceal his ownership and control of the companies, Suarez Vazquez designated "strawmen" as company owners, including his mother, on the corporate documents and Medicare Provider Agreements.

Continue reading "Palm Beach Medicare Fraudster Pleads Guilty to Mail Fraud & Money Laundering" »

Posted by Robert David Malove | Permalink | Email This Post

Posted In: Durable Medical Equipment Fraud , Medicaid Fraud

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On August 31, 2007, defendants Maricel Li and Marta Perez, both residents of Miami, were sentenced by United States District Court Judge James I. Cohn in Fort Lauderdale, Florida.

Li was sentenced to twenty-four (24) months' imprisonment, followed by three (3) years of supervised release. Li was also ordered to pay $556,519.85 in restitution. Perez was sentenced to five (5) months' imprisonment, to be followed by two (2) years of supervised release.

Both defendants had previously pled guilty. Defendant Li had pled guilty to an Information charging her with conspiracy to commit health care fraud violations and conspiracy to commit structuring violations. Defendant Perez had pled guilty to conspiracy to structure financial transactions.

Continue reading "Miami Defendants Sentenced on Health Care Fraud" »

Posted by Robert David Malove | Permalink | Email This Post

Posted In: Durable Medical Equipment Fraud , Medicare Fraud

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On August 30, 2007, the owner and operator of a Miami durable medical equipment company and an assisted living facility was convicted as charged in a five-count indictment by a federal jury in Miami of Medicare fraud in U.S. District Court for the Southern District of Florida.

After a jury trial at federal court in Miami, the jury found Marianela Smith guilty on all charged counts including conspiracy to defraud the U.S. government, to submit false claims to Medicare, and to receive kickbacks; conspiracy to commit health care fraud; and three counts of receiving kickbacks in exchange for referring patients to a co-conspirator pharmacy.

Smith faces a maximum sentence of 30 years in prison. Prior to sentencing the U.S. Probation Office will complete a pre-sentence investigation and submit a Pre-Sentence Report to the judge for consideration. The PSI will contain an advisory guideline sentence which the court must consider in determining what type and length of sentence is sufficient, but not greater than necessary, to comply with the statutory directives set forth in 18 U.S.C. § 3553(a).

Smith is scheduled to be sentenced November 9, 2007, before U.S. District Court Judge Joan A. Lenard.

Posted by Robert David Malove | Permalink | Email This Post

Posted In: Durable Medical Equipment Fraud , Medicare Fraud

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On April 20, 2007, the U. S. Attorney's Office for the Southern District of Florida, together with the Miami Field Office of the FBI, and the U.S. Department of Health and Human Services, Office of the Inspector General, announced the unsealing of an Indictment charging four (4) individuals in connection with a $3 million health care fraud, money laundering, and obstruction-of-justice scheme.

Charged in the 13-count Indictment are defendants Jorge Mariano Hernandez, Marta Saavedra, Tania Michel, and Jorge German Suasnavas. Hernandez, Saavedra, and Michel are charged in connection with a $3 million Medicare billing fraud scheme involving JT & M Medical Services, Inc., a Miami durable medical equipment (DME) company. Hernandez, Saavedra, and Suasnavas are separately charged with a conspiracy to commit money laundering regarding the proceeds of the fraud.

According to the Indictment, the criminal scheme involved the submission of claims for DME that were was neither ordered by doctors nor delivered to Medicare patients. In addition, the Indictment charges that Hernandez and Saavedra, who are married, conspired to obstruct the grand jury’s investigation of the alleged fraud at JT & M. The Indictment charges the pair with destroying records sought by the grand jury and directing a witness to give false testimony.

If convicted, the defendants face a maximum of ten (10) in prison on the health care fraud charges and up to an additional twenty (20) years behind bars for the money laundering charge. Hernandez and Saavedra also face a five (5) year maximum prison term for the obstruction conspiracy.

Posted by Robert David Malove | Permalink | Email This Post

Posted In: Durable Medical Equipment Fraud

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