Defendants Charged with Submitting Approximately $25 Million in Fraudulent Medicare Claims
Eighteen defendants, most of them residing in the Los Angeles area, have been charged in five indictments for allegedly participating in Medicare fraud schemes that resulted in approximately $25 million in fraudulent bills to the Medicare program, announced Assistant Attorney General of the Criminal Division Lanny A. Breuer, Acting U.S. Attorney for the Central District of California George S. Cardona and Daniel R. Levinson, Inspector General of the Department of Health & Human Services (HHS).
Federal and state agents arrested five of the defendants this morning, and seven others were taken into custody last week as the result of an investigation by the Medicare Fraud Strike Force that targeted fraudulent durable medical equipment (DME) providers. The five defendants arrested today are scheduled to make their initial appearances in U.S. District Court in Los Angeles beginning this afternoon.
"Today's indictments and arrests are important achievements in our ongoing fight against Medicare fraud, but there is more that we can, and will, do," said Assistant Attorney General of the Criminal Division Lanny A. Breuer. "Our Medicare Fraud Strike Force will continue to be vigilant in rooting out criminals who masquerade as health care providers in order to steal from American taxpayers. Every dollar stolen from the Medicare program is one dollar too many."
"The Strike Force has been an effective tool to address a long-standing problem in my district," said Acting U.S. Attorney George S. Cardona. "The nearly two dozen people charged in recent weeks are linked to approximately $25 million in fraudulent billings. That money is better spent paying for the medical needs of legitimate patients."??
"Our Strike Forces are working. The continued cooperation among our agencies has once again resulted in more indictments and arrests of those suspected of defrauding the Medicare Trust Fund," said Daniel R. Levinson, HHS Inspector General. "Today's operations demonstrate the effectiveness of using advanced technologies to detect fraud schemes and to support our joint enforcement efforts."
The five cases announced today involve DME company owners and marketers who are accused of engaging in a variety of schemes that defrauded the Medicare program through fraudulent bills which total approximately $25.5 million. The five charging documents outline criminal schemes involving the fraudulent ordering of power wheelchairs, orthotics (devices designed to assist with orthopedic problems) and hospital beds. In addition to the arrests, federal agents today executed search warrants at four locations in Los Angeles County.
Michael Martinez, 30, of Long Beach, Calif., and six other defendants were charged with conspiracy to commit health care fraud and for making false statements to the government. Martinez allegedly recruited relatives and individuals linked to the Santa Ana-based Brook Street Gang to act as straw owners for four fraudulent DME companies. The six other defendants -- Angel Michel, 36, of San Diego; Guadalupe Alcaraz, 30, of Corona, Calif.; Theresa Padilla, 23, of Moreno Valley, Calif.; Pedro Franco, 28, of Torrance, Calif.; Ricardo Navarro, 49, of Corona; and Martin Padilla, 42, of Moreno Valley -- allegedly each received approximately $5,000 from a Martinez associate to act as the nominal owners of the fraudulent DME companies. In this way, they could deceive Medicare by concealing the true identities of those who actually owned the companies. The indictment alleges that as part of the conspiracy, the fraudulent DME companies -- Mercy Medical Supplies Inc.; Chatsworth Medical Equipment Inc.; All Your Needs Healthcare Products Inc.; and Global Meridian Management Inc. -- submitted approximately $11.2 million in fraudulent Medicare claims for medically unnecessary power wheelchairs and orthotic devices. If convicted on all counts in the indictment, Martinez faces a maximum statutory penalty of 75 years in federal prison, and the other six defendants each face maximum sentences of 15 years in prison.
The owners of four DME companies and two of their employees were arrested on October 15 after being indicted for allegedly submitting more than $12 million in false claims to Medicare for power wheelchairs, orthotics and other medical equipment that the conspirators either did not supply, supplied to beneficiaries who did not need the equipment, or allegedly supplied to deceased beneficiaries. Christopher Iruke, 57, of Los Angeles, the owner of Pascon Medical Supply, and employee Darawn Vasquez, 25, of Inglewood, Calif., are alleged to have acquired fraudulent prescriptions and documents from individuals who recruited Medicare beneficiaries or were associated with fraudulent medical clinics. Iruke, Vasquez and Iruke's wife, Connie Ikpoh, 47, also of Los Angeles; as well as Jummal Joy Ibrahim, 54, of Las Vegas; and Asia Fowler, 38, of Pacoima, Calif.; who were the alleged owners of Horizon Medical Equipment and Supply Inc., Contempo Medical Equipment Inc., and Ladera Medical Equipment Inc., are alleged to have used the fraudulent prescriptions and documents Iruke and Vasquez acquired to submit approximately $12.1 million in false claims to Medicare. The indictment charges a sixth defendant, Aura Marroquin, 28, of Los Angeles, with participating in the scheme. If convicted on the charges alleged in the indictment, the six defendants face maximum possible sentences ranging from 50 years to 180 years in federal prison. A trial in this case has been scheduled for November 24.