Federal prosecutors unveiled what they described as one of the largest healthcare fraud cases ever brought in South Florida, accusing a Miami Lakes couple of orchestrating a massive scheme that drained 56 million dollars from Medicare over six years.
Mabel Diaz and Abner Diaz were charged with leading a billing operation that allegedly used dozens of short lived medical supply companies to submit false claims to the federal healthcare programme.
According to the indictment, the Diazes operated All-Med Billing Corp., a billing company based in Miami Lakes. Prosecutors allege that the company worked with 29 durable medical equipment firms to submit fraudulent Medicare claims.
The firms allegedly billed Medicare for equipment that was never delivered to patients. Items listed in the indictment include power wheelchairs, artificial limbs, oxygen concentrators and powered air mattresses.
Federal authorities say many of the equipment companies were created solely to facilitate the scheme. These businesses typically operated for only a few months, collected between one million and two million dollars each from Medicare, and then shut down before investigators could charge their owners.
Prosecutors allege the fraudulent activity began in 1998 and continued for years, far longer than most healthcare fraud operations.
The investigation intensified in 2004, when federal authorities sought a civil restraining order to stop All-Med Billing Corp. from continuing to bill Medicare. An agent’s affidavit filed at the time described the operation as a massive, aggressive and avaricious Medicare fraud scheme.
The company’s longevity, prosecutors said, stemmed from its billing structure. Prosecutor David Frank told the court that the billing operation added an extra layer of complexity to the investigation, extending the lifespan of the alleged fraud.
At a press conference announcing the charges, R. Alexander Acosta underscored the scale of the alleged crime.
“This is one of the most important cases ever filed by our office,” Acosta said. “This is our money which could have been used to treat patients rather than line the pockets of the accused.”
Federal prosecutors charged six additional individuals alongside the Diazes. They are:
Suleidy Cano
Amry Garcia, also known as Pablo
Davel Hernandez, also known as Manny
Rene Raimundo Hernandez
Jose Luis Palma Jr.
Luis Enrique Gonzalez
Altogether, the eight defendants face 46 criminal counts, most of them related to fraud. Each charge carries a potential sentence of up to 10 years in prison.
Prosecutors allege that much of the 56 million dollars obtained through fraudulent Medicare billing disappeared through money laundering activities.
The Diazes face an additional potential sentence of up to 20 years in prison related to the money laundering charges, according to the U.S. Attorney’s Office.
Federal authorities are also seeking criminal forfeiture of multiple assets. These include 32,292 dollars in cash seized from the couple’s home, funds held in various bank accounts, their Miami Lakes residence valued at 307,000 dollars, and properties located in Little Havana, Hialeah and Lehigh Acres.
At the same press conference, Timothy J. Delaney of the Miami office of the Federal Bureau of Investigation said healthcare fraud costs South Florida hundreds of millions of dollars every year.
Acosta noted that his office prosecuted 68 healthcare fraud cases in 2006, marking a 30 percent increase from the previous year. South Florida alone accounted for about one fifth of all federal healthcare fraud cases nationwide that year.
