Evelyn Herrera, Medicare Kickback Scheme, Florida 2024

EVELYN HERRERA, Medicare Kickback Scheme, Florida 2024

A Florida businesswoman has pleaded guilty to an information in the District of Vermont for participating in a conspiracy to pay health care kickbacks. Evelyn Herrera, 62, of Loxahatchee, Florida, owned a durable medical equipment company called Merida Medical Supplies Inc. (Merida).

Scheme Involved Medicare Fraudulent Claims

According to court documents, Herrera used Merida to submit fraudulent claims to Medicare for wrist, knee, and back braces that were never requested or received by patients. In total, Merida fraudulently billed Medicare approximately $6.5 million, and Medicare paid Merida approximately $2.8 million based on those claims.

Herrera Attempted to Hide Illicit Funds

As part of the scheme, Herrera tried to hide the source of the funds generated fraudulently by Merida. For example, she transferred more than $300,000 in fraud proceeds to a cryptocurrency exchange and sent another $125,000 of illicit funds via international wire transactions for the purchase of a property in Tulum, Mexico. After the Centers for Medicare and Medicaid Services issued a payment suspension letter to Merida for suspected fraud, Herrera withdrew large amounts of cash from a bank and transferred some of the funds to benefit herself and members of her family.

Investigation and Prosecution

HHS-OIG and FBI are investigating the case. Trial Attorneys Sarah Rocha, Thomas Campbell, and Tiffany Wynn of the Justice Department’s Fraud Section are prosecuting the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program.

Strike Force Program Results

Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion.

Sentencing and Penalties

Herrera is scheduled to be sentenced on May 11, and faces a maximum penalty of five years in prison.

Tags and Category

Tags: [“t1”, “t2”, “t3”]
Category: Fraud & Financial Crimes

Related Federal Cases