McAllen DME Owner Garza Found Guilty of $2.5M Medicaid Fraud

McALLEN, Texas – Maria Garza, 41, of McAllen, has been convicted by a federal jury on all 18 counts related to a brazen scheme to defraud Texas Medicaid through her durable medical equipment (DME) company, Hacienda DME. The verdict follows a grueling seven-day trial and six hours of jury deliberation, signaling a strong condemnation of Garza’s calculated fraud.

Garza, the owner of Hacienda DME, was found guilty of orchestrating a scheme that submitted false and fraudulent claims to Texas Medicaid for incontinence supplies. The scheme involved billing for items never provided or without proper physician authorization. Crucially, the jury heard evidence of forged and falsified prescription forms bearing the signatures of unwitting doctors. Garza and her co-conspirators also intentionally up-billed for larger, more expensive sizes of pull-ups and diapers, regardless of patient need, simply to maximize Medicaid reimbursements.

The scope of the fraud is staggering. Between March 2008 and August 2013, Garza flooded Texas Medicaid with false claims totaling approximately $2,505,064.50. The state agency paid out a staggering $1,805,940.12 on these fraudulent claims. The jury also determined that Garza and her associates illegally used the identities of physicians to facilitate the unlawful billing, compounding the severity of the crimes. This wasn’t just about money; it was about exploiting a system designed to help vulnerable citizens.

The investigation revealed a network of illegal activity extending beyond simple fraudulent billing. Garza allegedly paid illegal kickbacks – cash and checks – in exchange for patient information, specifically their Texas Medicaid numbers. Even more disturbingly, Garza and her co-conspirators engaged in the practice of buying back previously delivered supplies from Medicaid recipients, then re-using them to submit further fraudulent claims. This demonstrated a callous disregard for both the law and the well-being of those receiving care.

The jury didn’t stop at fraud. Garza was also convicted of witness tampering, specifically threatening the use of physical force and intimidation against others involved in the conspiracy, attempting to silence potential witnesses and obstruct justice. This brazen act further underscores her willingness to break the law to protect her criminal enterprise.

Garza now faces a potentially lengthy prison sentence. She could receive up to 10 years in federal prison for conspiracy to commit health care fraud and each of the 11 counts of health care fraud. The two counts of witness tampering carry a possible 20-year-maximum sentence each. Adding to her woes, she faces an additional and mandatory 24 months in prison for the four counts of aggravated identity theft, to be served consecutively with any other sentences imposed. The investigation was a collaborative effort by the Texas Attorney General’s Medicaid Fraud Control Unit, the FBI, and the Department of Health and Human Services – Office of Inspector General. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.