Los Angeles, CA – In a major blow to Medicare scammers, 20 individuals have been charged with participating in health care fraud schemes that bilked the program out of over $26 million. The Medicare Fraud Strike Force, a partnership between federal and state law enforcement agencies, has been cracking down on durable medical equipment (DME) providers suspected of submitting false claims to Medicare.
According to a statement from Assistant Attorney General Lanny A. Breuer, the indictments and arrests are a significant achievement in the ongoing fight against Medicare fraud. “Our Medicare Fraud Strike Force will continue to be vigilant in rooting out criminals who masquerade as health care providers in order to steal from American taxpayers,” Breuer said. “Every dollar stolen from the Medicare program is one dollar too many.”
The charges stem from an investigation that targeted DME providers accused of submitting false claims for medically unnecessary power wheelchairs, orthotics, and hospital beds. The schemes allegedly involved straw owners and recruiters who concealed the true identities of those who actually owned the companies. Michael Martinez, 30, of Long Beach, California, and six other defendants were charged with conspiracy to commit health care fraud and making false statements to the government.
Martinez allegedly recruited relatives and individuals linked to the Santa Ana-based Brook Street Gang to act as straw owners for four fraudulent DME companies. The other six defendants – Angel Michel, 36, of San Diego; Guadalupe Alcaraz, 30, of Corona, California; Theresa Padilla, 23, of Moreno Valley, California; Pedro Franco, 28, of Torrance, California; Ricardo Navarro, 49, of Corona; and Martin Padilla, 42, of Moreno Valley – each received approximately $5,000 from Martinez’s associate to act as nominal owners of the fraudulent DME companies.
The indictment alleges that the fraudulent DME companies – Mercy Medical Supplies Inc.; Chatsworth Medical Equipment Inc.; All Your Needs Healthcare Products Inc.; and Global Meridian Management Inc. – submitted approximately $11.2 million in fraudulent Medicare claims for medically unnecessary power wheelchairs and orthotic devices. If convicted on all counts in the indictment, Martinez faces a maximum statutory penalty of 75 years in federal prison, and the other six defendants each face maximum sentences of 15 years in prison.
The arrests and search warrants executed at four locations in Los Angeles County are a significant blow to the DME scams that have been plaguing the Medicare program. As Acting U.S. Attorney George S. Cardona stated, “The Strike Force has been an effective tool to address a long-standing problem in my district. The nearly two dozen people charged in recent weeks are linked to more than $26 million in fraudulent billings.” That money is better spent paying for the medical needs of legitimate patients.
The Medicare Fraud Strike Force will continue to work tirelessly to root out Medicare scammers and bring them to justice. As HHS Inspector General Daniel R. Levinson stated, “Our Strike Forces are working. The continued cooperation among our agencies has once again resulted in more indictments and arrests of those suspected of defrauding the Medicare Trust Fund.”
<p>Los Angeles, CA – In a major blow to Medicare scammers, 20 individuals have been charged with participating in health care fraud schemes that bilked the program out of over $26 million. The Medicare Fraud Strike Force, a partnership between federal and state law enforcement agencies, has been cracking down on durable medical equipment (DME) providers suspected of submitting false claims to Medicare.</p><p>According to a statement from Assistant Attorney General Lanny A. Breuer, the indictments and arrests are a significant achievement in the ongoing fight against Medicare fraud. “Our Medicare Fraud Strike Force will continue to be vigilant in rooting out criminals who masquerade as health care providers in order to steal from American taxpayers,” Breuer said. “Every dollar stolen from the Medicare program is one dollar too many.”</p>
Related Federal Cases
- Irina Segal, Medicare Fraud, Philadelphia PA, 2023 · New Jersey
- Irina Segal, Medicare Fraud, Philadelphia PA, 2023 · New Jersey
- McKenzie Marie Earley, $10M Wire Fraud, C.D. California, 2023 · Pennsylvania
- Bruce Choi, COVID-19 Relief Fraud, Los Angeles CA, 2023 · California
- Frank Hamilton Sentenced to 5.5 Years for SBA Scam, California, 2023 · Texas
Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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