Seven Houston Residents, Hospice Fraud, Texas 2023

HOUSTON, Texas - Seven Houston residents have been charged in a superseding indictment for their roles in a Medicare fraud scheme involving patients not terminally ill.

The indictment alleges that Dera Ogudo, 40, of Richmond, and Victoria Martinez, 36, of Richmond, operated United Palliative & Hospice Company, a business that misled elderly patients and their families about services billed to Medicare and Medicaid.

According to the 43-count superseding indictment, all seven conspired to fraudulently bill Medicare and Medicaid for over $110 million for hospice services provided to patients who were not terminally ill.

The charges allege that Ogudo and Martinez operated multiple hospice companies, including Residential Hospice and Cedar Hospice, under straw ownership to continue the fraud.

Ogudo is also charged with 14 counts of engaging in monetary transactions involving criminally derived property, and Martinez is charged with conspiracy to commit money laundering.

Each conviction could result in up to 10 years in prison, and Ogudo and Martinez also face one count of conspiracy to commit money laundering, which carries a penalty of up to 20 years.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

The charges were announced by U.S. Attorney Nicholas J. Ganjei, and the investigation was conducted by the FBI, Department of Health and Human Services-Office of Inspector General, and Texas Attorney General’s Medicaid Fraud Control Unit.

Assistant U.S. Attorneys Kathryn Olson and Brad Gray are prosecuting the case.

Defendant: Dera Ogudo, 40; Victoria Martinez, 36; Hattie Banks, 49; Lydia Obere, 59; Cheryl Brooks, 64; Ena Cowart, 50; Evelyn Shaw, 52

Criminal Charges: Conspiracy to commit health care fraud, multiple counts of health care fraud, conspiracy to pay and receive kickbacks, substantive violations of the Anti-Kickback Statute, engaging in monetary transactions involving criminally derived property, conspiracy to commit money laundering

City and State: Houston, Texas

Date: October 5

Sentence or Outcome: Arrested and charged

Dollar Amounts: $110 million

Source: https://www.justice.gov/usao-sdtx/pr/four-more-charged-110-million-hospice-fraud-scheme