DME provider sentenced to prison

Friday, July 12, 2013

MCALLEN, Texas – The owner of a now defunct DME business has been ordered to prison for his role in a scheme to defraud Medicare and Medicaid through fraudulent billing, according to a press release from the U.S. Attorney’s Office for the southern district of Texas. The scheme involved about $11.1 million in false claims to the agencies. Marcello Herrera, the former owner of RGV DME in McAllen, Texas, pleaded guilty in February and has now been ordered to go to prison for 120 months, be under supervision for three years following his release and pay $6.1 million in restitution. Herrera and his accomplices admitted that they used marketers to obtain Medicare and Medicaid ID numbers and other information from beneficiaries, which they, in turn, used to fraudulently bill for DME that was either never prescribed or prescribed but never delivered. They also acknowledged that they attempted to obtain referrals of patients or orders for DME from doctors in exchange for gifts.