Rio Grande Doc in Illegal Kickback Scam: Dr. Jose de Jesus Martinez Arrested

McALLEN, Texas – In a stunning revelation from the Rio Grande Valley, Dr. Jose de Jesus Martinez, 51, of Palmhurst, has been apprehended for orchestrating an illegal kickback scheme involving Medicare patient referrals.

According to U.S. Attorney Kenneth Magidson, a grand jury in McAllen indicted Martinez on January 17, 2017. Today’s arrest unsealed the charges against him, with his initial appearance set before U.S. Magistrate Judge Peter Ormsby this morning.

The indictment accuses Martinez of soliciting and obtaining cash in exchange for referrals of Medicare beneficiaries to home health agencies. These agencies then submitted fraudulent claims to Medicare based on these illegal kickback payments, as alleged by the charges.

Martinez is accused of receiving cash kickbacks for referring Medicare patients and instructing others to alter patient records to facilitate the submission of fraudulent claims. He faces one count of conspiracy to solicit or receive illegal remunerations, three counts of illegal remunerations, and one count of obstruction of criminal investigations of health care offenses. Each offense carries a maximum five years in federal prison.

The investigation was a collaborative effort between the FBI, the Department of Health and Human Services – Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit, and the Texas Health and Human Services Commission-Office of the Inspector General. Assistant U.S. Attorneys Andrew Swartz and Michael Day are handling the prosecution.

It is important to note that an indictment is a formal accusation of criminal conduct and not evidence. The defendant, Dr. Jose de Jesus Martinez, is presumed innocent unless proven guilty through due process of law.

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