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Oscar Huachillo Pleads Guilty to Medicare Fraud in NYC
Former operator of NYC health clinics pleads guilty to $31 million Medicare fraud scheme
By Grimy Times Staff, May 22, 2026
Oscar Huachillo, the former operator of multiple HIV/AIDS clinics in New York City, pled guilty to orchestrating a scheme to defraud Medicare out of more than $31 million by billing Medicare for expensive treatments that were administered at a highly diluted dose or never administered at all, and were often medically unnecessary.
According to the United States Attorney for the Southern District of New York, Preet Bharara, Huachillo also pled guilty to evading more than $3.4 million in federal income taxes by falsely underreporting his income. Huachillo pled guilty before U.S. District Judge Katherine Polk Failla.
The scheme, which was executed by Huachillo and his co-conspirators, involved recruiting HIV/AIDS patients who were eligible for Medicare to come to the clinics multiple times per week, for multiple months, to undergo expensive ‘treatments’ that were often unnecessary. The purported treatments included drugs costing hundreds of dollars each to administer and typically reserved for cancer and anemia patients.
Huachillo and his co-conspirators paid the patients cash kickbacks of up to $300 per week in exchange for coming to the clinics. The scheme put patients at risk, financially burdened the Medicare program, and cheated honest taxpayers.
Manhattan U.S. Attorney Preet Bharara said: ‘Oscar Huachillo has admitted guilt in defrauding Medicare out of tens of millions of dollars, and then literally compounding the felony by evading millions of dollars in taxes on the illegal windfall.’
Oscar Huachillo
Defendant/Respondent Name: Oscar Huachillo
Criminal Charges: Defrauding Medicare out of more than $31 million, evading more than $3.4 million in federal income taxes
City and State: New York City, New York
Exact Date: Not specified
Sentence or Outcome: Awaiting sentencing
Dollar Amounts: $31,000,000 (Medicare fraud), $3,400,000 (evaded income taxes)
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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