16 Charged in $101 Million S. Florida Fraud Sweep

MIAMI–In another south Florida sweep, federal officials have
charged 16 people with committing $101 million in DME health care
fraud in Miami and Tampa.

Early last month, officials announced that 38 DME and infusion
therapy providers had been arrested and $142 million in billing
fraud uncovered by a Medicare Fraud Strike Force formed in south
Florida. (See HomeCare Monday, May 14.)

The U.S. Attorney for the Southern District of Florida announced
the new charges, which resulted from joint investigations by that
office, the FBI, the HHS Office of Inspector General, U.S.
Immigration and Customs Enforcement and Florida’s Attorney
General.

On May 22, a federal grand jury returned a 46-count indictment
against eight defendants in a billing fraud scheme connected with
Miami-based All-Med Billing Corp., which allegedly submitted $80
million in false claims on behalf of 29 DME companies from 1998 to
2004. Medicare paid the companies about $56 million for equipment
that had not been ordered by a physician and/or had never been
delivered to patients, according to a government press release.

Among the defendants are Abner and Mabel Diaz, the
husband-and-wife team who ran the billing service, and employee
Suleidy Cano. The Diazes were additionally charged with money
laundering proceeds from the scheme.

Other defendants include Amry Garcia, Davel Hernandez and Rene
Raimundo Hernandez of A-1 Durable Medical Equipment and Supplies, a
Miami DME that took in $2.1 million from claims submitted by
All-Med, officials said.

Jose Luis Palma Jr., and Luis Gonzalez of Simply Medical
Services, Miami, were also charged in the indictment. Gonzalez was
additionally charged in relation to another DME company, Premier
Medical Service. Medicare paid over $3.7 million as a result of
fraudulent claims allegedly submitted by All-Med on behalf of
Simply Medical and Premier.

If convicted, each of the defendants faces a maximum of 10
years’ prison time per count. The Diazes could get an additional 20
years on the money laundering charge. The indictment also seeks
forfeiture of the fraud proceeds and substitute assets, including
real estate of the Diazes.

According to the release, additional actions included the
following:

–A May 22 indictment charged Jose Tomas Iglesias, Marco Antonio
Marrero and Leslie Gonzalez of Bridge Medical Equipment in Miami
with submitting $6.8 million in bogus DME claims last year for
which Medicare paid $1 million. Iglesias was separately charged
with laundering the proceeds by cashing or depositing checks and
with identity theft by using another’s Florida driver’s license in
the scam.

–Alejandro De La Victoria, the owner of Miami DME Precise
Medical Services, was indicted May 22 for submitting $3 million in
false Medicare claims last year and receiving approximately $1.4
million in payments.

–Maria Oliveros-Garay was indicted May 15 on four counts of
health care fraud involving Miami DME Abue Medical Equipment.
According to the indictment, Oliveros-Garay submitted approximately
$3.8 million in fraudulent DME claims in 2006, of which Medicare
paid $1.5 million.

–Mario Mira was charged with fraud in connection with Mario
& Clara Medical Supply, Miami, which submitted $2.5 million in
fraudulent DME claims to Medicare in 2006, the release said.

–Eduardo Ruiz was charged with fraud in connection with EZ
Medical, a Tampa DME. In 2005, Ruiz alledgedly submitted $5.3
million in false DME claims by using the Medicare identification
numbers of Miami-Dade beneficiaries. Medicare paid out $1.38
million on the claims, according to the release.