Florida man convicted of $10.9M in brace fraud
By HME News Staff
Updated 9:16 AM CDT, Thu May 1, 2025
TAMPA, Fla. – A federal jury has found Lino Mallari Gutierrez of Palm City, Fla., guilty of conspiracy to commit health care and wire fraud, conspiracy to violate the federal anti-kickback statute, five substantive counts of health care fraud and four substantive counts of payment of kickbacks in connection with a heath care program. According to testimony and evidence presented at trial, Gutierrez and his co-conspirators owned and operated two DME companies that collectively billed Medicare more than $10.9 million for medically unnecessary braces, of which more than $5 million was paid to Gutierrez and his co-conspirators. Gutierrez concealed his role in the scheme by putting the DME companies in the names of straw owners, and was in the process of establishing four more DME companies with additional straw owners—including Gutierrez’s mother and two of Gutierrez’s friends—when the U.S. Department of Health and Human Services-Office of Inspector General and the Federal Bureau of Investigation identified the DME fraud through a national operation. Prior to law enforcement action, Gutierrez had already taken multiple steps to use these additional DME companies to bill Medicare for additional fraudulent claims. After learning of law enforcement action, Gutierrez moved Medicare proceeds from his account into other bank accounts under his control. Gutierrez was remanded into custody and faces a maximum penalty of 20 years in federal prison.
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