Arrests Made in Alleged $5 Million Billing Scam for HIV Infusion Treatments
June 18th, 2007
Florida Attorney General Bill McCollum announced May 31 the arrest of eleven South Florida residents in connection with an alleged scheme to fraudulently bill Medicaid and Medicare for HIV infusion treatments and drugs.
McCollum said federal and state investigators found the multi-county healthcare fraud scheme also involved criminal racketeering, money laundering, and grand theft.
According to McCollum’s press release, the Belle Glade Family Health Group, Inc. (BGFH) located in Palm Beach County fraudulently billed Medicaid and Medicare more than $5 million over a 12-month period.
Among those arrested were clinic owners Hortensia Escoto and her husband, Richard Escoto, and Nieves Delgado and her husband, William Alvarez.
A probable cause affidavit filed against the 12 defendants noted Medicare beneficiaries said BGFH recruited them to go to the clinic, where they would receive treatments three times per week for a six-week period and be paid $25 per visit. A majority of the beneficiaries reported receiving one shot in their upper arm, which they believed was a vitamin shot, the affidavit said.
The investigation found BGFH purchased less than 2% of the medication necessary to support the quantity billed to Medicare for the alleged infusion treatments, the affidavit said.
A phlebotomist working at BGFH said of the 12 patients typically treated each day, at most three received the actual HIV infusion, while the others only would receive a vitamin shot.
The investigation further revealed that defendants laundered the proceeds of the alleged scam through a check cashing store, a durable medical equipment company and diagnostic center, and a medical transportation company.
If convicted, each individual faces up to 105 years in prison.
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