SAN JUAN, P.R. – Karen Curet-Nieves, a former Program Technician with the Programa de Asistencia Médica in Santurce, Puerto Rico, will spend the next four years in federal prison after being sentenced for her role in a brazen bribery and healthcare fraud scheme. Judge Pedro A. Delgado handed down the 48-month sentence, alongside two years of supervised release, on February 22, 2018, and ordered Curet-Nieves to pay $20,000 in restitution to the U.S. Department of Health and Human Services, and complete 100 hours of community service.
Curet-Nieves, who evaluated applications for the Mi Salud program, abused her position to rubber-stamp eligibility for individuals who didn’t qualify. From approximately July 2014 through October 2015, she allegedly input fraudulent data into the Medicaid Integrated Technology Initiative (MEDITI) system, effectively opening the floodgates for ineligible participants to receive benefits. This resulted in federal funds being diverted to Managed Care Organizations for monthly premiums and healthcare utilization – money stolen from legitimate patients.
The scheme wasn’t a solo operation. Curet-Nieves received names, Social Security numbers, birth dates, and addresses from co-conspirators. For a mere $10.00 per head, she’d bypass standard interview procedures and falsely enroll 20 to 30 unqualified individuals per week into the Mi Salud program. This systematic corruption turned the program into a cash cow for those involved. She pled guilty to three counts: bribery, conspiracy to commit health care fraud, and aggravated identity theft – all violations of federal law (18 U.S.C. §§ 666(a)(1)(B), 1347, 1349, and 1028A).
Curet-Nieves isn’t the only one facing consequences. A federal grand jury indicted her, along with two other Programa de Asistencia Médica agents and five “runners” back on February 24, 2016. Luis González-Cordova, a clerk in the Santurce office, received a 24-month and one-day sentence on May 26, 2017, and was also ordered to pay $20,000 in restitution after pleading guilty to the same charges as Curet-Nieves. Orlando Negrón-Bonilla, another program technician, was sentenced to 24 months in prison on March 17, 2017, and ordered to pay $20,000 in restitution after pleading guilty to aggravated identity theft.
The “runners” – Ruben Escalera-Rivera, Perfecto De León-Toribio, Luis Caceres-De León, Luis Ángel García-Rosa, and Andrea Jiménez-De Jesús – acted as recruiters, soliciting individuals for fraudulent enrollment in exchange for cash bribes. They allegedly never even met the individuals they were signing up, highlighting the sheer scale of the operation. Each of these individuals entered guilty pleas to conspiracy to commit health care fraud, a felony.
This case, prosecuted by Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, serves as a stark reminder that exploiting healthcare programs for personal gain will not be tolerated. While four years is a significant sentence for Curet-Nieves, it remains to be seen if it will deter others from attempting similar schemes in a system ripe for abuse. The investigation underscores the vulnerability of social safety nets when greed and corruption take hold.”
Related Federal Cases
- Karen Curet-Nieves, Bribery and Healthcare Fraud, PR 2018 · Massachusetts
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- Carlos Maldonado Charged with $5M Ponzi Scheme, San Juan PR, 2023 · Puerto Rico
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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