Nine Charged in Miami DME, Orthotics Fraud Ring

Miami

On June 18, nine individuals were charged with a $14.5-million Medicare fraud, money laundering and financial structuring scheme involving more than 12 DME companies.

According to the 28-count indictment, 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 DME companies, including Five Star Medical Equipment & Supplies, Extended Health Care Services, Hafar Medical Equipment and others located in Miami-Dade County.

The indictment alleges the conspirators used the companies, all of which closed in December 2002, to fraudulently bill Medicare for custom-made orthotics such as knee, shoulder and hip braces and other medical services that were neither provided nor needed by patients. The indictment also alleges that the defendants paid kickbacks to patient recruiters who would, in turn, bribe Medicare beneficiaries to serve as fictitious patients for the medical equipment companies. Between 2000 and 2002, the companies were said to have received $14.5 million in Medicare reimbursements for false claims relating to orthotics and other equipment such as oxygen tanks and hospital beds.

The investigation, announced by U.S. Attorney Marcos Daniel Jimenez of the Southern District of Florida, was conducted by the FBI, HHS and the IRS, with assistance provided by law enforcement authorities in the Dominican Republic.

For breaking news, go to www.homecaremonday.com, the electronic news service of the home medical equipment industry.