DME Scam Fugitive Caught in Mexico

MIAMI — A fugitive who went on the lam after being
indicted in a $179 million DME fraud scheme was captured in Mexico
and is now awaiting trial in the U.S., according to the FBI.

Jose Luis Perez, 34, was arrested Jan. 15 in Cancun, where he
fled after learning he had been indicted in the massive Medicare
case and was going to be arrested. Perez and co-defendant Reinaldo
Guerra were indicted on June 30, 2009, on charges of conspiracy to
commit Medicare fraud, Medicare fraud and aggravated identity
theft. The latter charge stems from the pair using physicians’
Medicare identification numbers without the physicians’
authorization.

According to the indictment, the two men ran 21 corporations in
the Miami area that supposedly provided DME to Medicare
beneficiaries. However, the FBI said, they used “straw,” or
nominee, owners to hide their control of the companies. Over an
unspecified period of time, they submitted some $179 million in
fraudulent claims for DME that had not been prescribed or ordered
by a physician nor delivered to a beneficiary. Medicare paid out
$56 million on the claims.

Guerra was sentenced in November to 14 years in prison, followed
by three years of supervised release. He must pay $35 million in
restitution to Medicare.

Perez, who is currently being held at the Federal Detention
Center in Miami, was scheduled to have his first appearance before
the duty magistrate judge today.