Press Release
TWO FAMILIES CHARGED FOR OPERATING $11.5 MILLION MEDICARE FRAUD SCHEME
July 16, 2008
FOR IMMEDIATE RELEASE
R. Alexander Acosta, United States Attorney for the Southern District of Florida, Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, announced that defendants David Hernandez and Laura Hernandez, of Pembroke Pines, FL, and Jose Miguel Hernandez, of Hialeah, FL, were arrested today on an Indictment charging them with one count of conspiracy to commit health care fraud, and eight (8) counts of Medicare fraud. Additionally, David Hernandez was charged with one count of conspiracy to commit money laundering, and eight counts of money laundering. Previously, on May 30, 2008, the United States Attorney filed separate Informations against Magaly Martinez, Jose Echevarria, Yuniel Echevarria, and Suyima Torres, charging them each with one count of conspiracy to commit healthcare fraud.
According to the Indictment, David Hernandez recruited Magaly Martinez to become the nominal owner of SOS DME, Inc., a durable medical equipment (DME) company that submitted $2,803,772 in false claims to Medicare. Later, Hernandez recruited three of Martinez's family members, her son Yuniel Echevarria, husband Jose Echevarria, and daughter-in-law Magaly Martinez, to serve as the nominal owners of three additional DME companies, named YYS Medical Supply, Inc., All County Medical Equipment, Inc., and Tri-County Medical Supplies, Inc. Those three companies submitted false claims to the Medicare system, totaling $8,652,734. All four companies submitted the false claims to Medicare through Triple AAA Billing, a billing company owned by David Hernandez's wife, defendant Laura Hernandez. The Indictment alleges that David Hernandez's brother, Jose Miguel Hernandez, made monthly cash kickback payments to the patients of all four companies, who signed delivery receipts for medical equipment and supplies that were never received.
If convicted, all defendants face a maximum of ten years' imprisonment on the Medicare fraud offenses. David Hernandez faces a maximum penalty of twenty years' imprisonment on the money laundering offenses.
Mr. Acosta commended the investigative efforts of the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of Inspector General. This case is being prosecuted by Assistant United States Attorneys Ryan Stumphauzer and Alicia Shick.
Attachments:
Indictment (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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