Grimy Times Investigates: A Chula Vista couple, Melissa Alvarez Torres and Jose Luis Olmos Hernandez, were sentenced to prison for their role in a brazen healthcare fraud scheme that targeted pregnant women in California.
Melissa Alvarez Torres and Jose Luis Olmos Hernandez, a couple from Chula Vista, California, were sentenced in federal court on October 26, 2021, to 33 months and 40 months in prison, respectively, for stealing hundreds of thousands of dollars from pregnant women and using the money to buy multiple properties in Mexico, including a beachfront home in Nayarit.
According to court documents, the couple used Facebook to fraudulently market private “insurance” under the name Seguros Americanos Embarazo (“American Pregnancy Insurance”). They targeted pregnant women living in Mexico and holding work or tourist visas permitting them to enter the United States. These women contacted Alvarez and Olmos through Facebook or WhatsApp after being referred by other women. Alvarez and Olmos falsely claimed that their “insurance” product would permit these pregnant women to give birth legally in the United States without risk to their visas.
The women, many first-time mothers dealing with high-risk pregnancies, hoped to access high-quality American health care and knew that they could not lawfully use a public health program, and that they would lose their visas if they did so. Alvarez and Olmos falsely assured the pregnant women that their product was private insurance and instructed them on how to avoid any problems when crossing the border for medical appointments. Alvarez and Olmos charged each woman between $1,200 and $3,000 per pregnancy for the “insurance.”
Alvarez and Olmos have admitted that, in reality, they did not have private insurance to sell. They used the women’s personal identifying information to sign them up for MCAP benefits through the State of California without the knowledge or consent of the women. Alvarez and Olmos submitted hundreds of false applications and fraudulent supporting tax and employment documents to MCAP, falsely claiming that the women were California residents and therefore eligible for benefits. Alvarez also impersonated dozens of these women in phone calls to MCAP trying to get the fraudulent applications approved.
As a result of their scheme, Alvarez and Olmos cost American taxpayers over $1 million in health care costs and profited by charging hundreds of thousands of dollars in fraudulent fees paid by the pregnant women.
Defendant Information:
Defendant: Melissa Alvarez Torres and Jose Luis Olmos Hernandez
Criminal Charges: Healthcare Fraud
City and State: Chula Vista, California
Date: October 26, 2021
Sentence: 33 months and 40 months in prison, respectively
Dollar Amount: Over $1 million in health care costs and hundreds of thousands of dollars in fraudulent fees
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Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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