Three plead guilty in $11M fraud scheme

Friday, February 22, 2013

MCALLEN, Texas – A Texas couple who ran a home medical equipment company and an ex-worker have pleaded guilty in an $11 million healthcare fraud investigation, according to the Associated Press. Prosecutors say RGV DME owner Marcelo Herrera, his wife Carla Cantu Herrera and Ramon De La Garza pleaded guilty to conspiring to defraud Medicare and Texas Medicaid. Marcelo Herrera and De La Garza also pleaded guilty to aggravated identity theft in false reimbursement submissions since 2004. Marcelo Herrera agreed to repay more than $6.1 million, while his wife and De La Garza must each pay over $5 million in restitution. The conspiracy count carries a maximum penalty of 10 years in prison, and aggravated ID theft has a mandatory two-year prison term. The trio faces sentencing later this year, according to the article.