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Three Individuals, Including A Former Texas Mayor, CEO and Owner, Found Guilty in a $154 Million Money Laundering and Health Care Fraud Scheme
A federal jury in Texas has found three individuals associated with dozens of hospice and home health companies guilty of their roles in a $154 million health care fraud scheme, one of which was a mayor in Texas at the time.
After a three-week trial, the jury found Rodney Mesquias, 47, of San Antonio, Texas, Henry McInnis, 47, of Harlingen, Texas, and Francisco Pena, 82, of Laredo, Texas, guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. In addition, Mesquias and McInnis were found guilty of six counts of health care fraud and one count of conspiracy to obstruct justice. Pena was also convicted of one count of health care fraud, obstruction of health care investigations and one count of false statements, while Mesquias and Pena were each convicted of one count of conspiracy to pay and receive kickbacks.
U.S. District Judge Rolando Olvera presided over the trial and set sentencing for June 17, 2020.
“Rodney Mesquias and his co-conspirators preyed on the most vulnerable population – those in need of hospice and home health care– to line their pockets with millions of dollars and engage in lavish spending,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “I thank our law enforcement partners for their hard work and dedication to bringing these health care fraudsters to justice. We look forward to continuing our partnership as we expand the Strike Force into the Rio Grande Valley.”
“It’s disgusting how these three made millions by lying about and manipulating people’s end of life care,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “These men won’t have season tickets or nice cars where they are headed.”
“Hospices should provide meaningful quality of life care for patients in the final stage of their disease. Rather than help these vulnerable patients, Mesquias and McInnis operating as the Merida Health Care Group along with Dr. Francisco Pena, exploited them and their families to steal millions of dollars from the American taxpayer,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “The FBI is committed to aggressively investigating and bringing to justice those who undermine our health care system.”
According to evidence presented at trial, from 2009 to 2018, Mesquias, McInnis and Pena engaged in a scheme that involved over $150 million in false and fraudulent claims for hospice and other health care services. Mesquias owned and controlled the Merida Group, a large health care company that operated dozens of locations throughout Texas. McInnis was CEO. Pena, a licensed physician, was a medical director for the Merida Group and was at the time the mayor of Rio Bravo, Texas.
The defendants kept the patients on hospice care for weeks, months, and even years, even though they were not suffering from a terminal illness that was expected to result in their death within six months, as is required to qualify for hospice services. In some instances, the patients were walking, driving, working, and even coaching athletic sporting events, the evidence at trial showed. However, the defendants kept the patients on hospice care and sent chaplains to lie to the patients and discuss last rites and preparation for their imminent death.
The Merida Group enrolled patients with long-term incurable diseases, such as Alzheimer’s and dementia, at group homes, nursing homes, and in housing projects by falsely telling them that they had less than six months to live. The evidence at trial showed that the patients were not suffering from a terminal illness that was expected to result in their death within six months, as is required to qualify for hospice services.
The defendants used the money they obtained from the false and fraudulent claims to engage in lavish spending, including the purchase of luxury cars, real estate, and other goods and services. The evidence at trial showed that Mesquias and McInnis used the money to purchase luxury cars, real estate, and other goods and services, while Pena used the money to purchase luxury cars and real estate.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes|Public Corruption
- Source: DOJ Press Release â†â€â€
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