Orthotics, DME Fraud Ring Convicted

MIAMI–A federal jury has convicted 12 defendants in connection
with a $17 million DME billing and money-laundering scheme
involving custom-made orthotics such as knee, shoulder and hip
braces, along with other equipment including oxygen tanks and
hospital beds.

The indictment alleged that Ruben Martinez and four family
members–daughter and son-in-law Adriana and Daniel Ramos, son
Daniel and mother Edith–owned and controlled the DME companies
involved in the scheme. To conceal their involvement, the
conspirators allegedly recruited other individuals to serve as
“straw” owners of the companies, including Five Star Medical
Equipment & Supplies, Extended Health Care Services, Hafar
Medical Equipment and others located in Miami-Dade County. The
defendants allegedly paid kickbacks to patient recruiters who
would, in turn, bribe Medicare beneficiaries to service as
fictitious patients.

Between 2000 and 2002, the companies received approximately $17
million in Medicare payments, all of which were reimbursements for
false claims, according to the U.S. District Attorney’s Office for
the Southern District of Florida. All the companies closed in
December 2002.

The case was investigated by the FBI, HHS and the IRS.