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Medicare Fraud Strike Force Cases Result in Long Prison Terms

by Barbara Kram, Editor | December 18, 2007

Gourie was sentenced by U.S. District Judge Patricia A. Seitz. Gourie owned and operated Friends Medical Inc., another fraudulent DME company that had nothing to do with providing health care or necessary medical equipment. Friends Medical submitted claims to Medicare of more than $5.4 million, between September 2004 and September 2006, for medical equipment largely consisting of unnecessary power wheelchairs and incontinence supplies. Gourie pleaded guilty on Oct. 4, 2007.

Garcia was sentenced to by U.S. District Judge Donald L. Graham. Garcia owned and operated Northwest Medical Equipment Inc., a fraudulent DME company that had nothing to do with providing health care or necessary medical equipment. Between January and December 2006, Northwest Medical submitted claims to Medicare of more than $4.5 million for medical equipment largely consisting of unnecessary wound care supplies, pressure-reducing mattresses, and oxygen concentrators. Garcia pleaded guilty on Oct. 3, 2007.

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Ruiz, the owner of Solair Medical Corp., was sentenced by Chief U.S. District Judge Federico A. Moreno. Ruiz owned and operated Solair Medical Corp., another fraudulent DME company. Solair Medical submitted claims to Medicare of approximately $980,000 between, June 2006 and March 2007, for medical equipment largely consisting of unnecessary wound care supplies. Ruiz pleaded guilty on Oct. 23, 2007.

"We are continuing to seek appropriate sentences for the most serious Medicare fraud offenders," said Assistant Attorney General Fisher. "The Strike Force in South Florida has successfully prosecuted some of the most egregious cases of Medicare fraud, and the average prison sentence for these violators is now up to almost 52 months which is above the national average of 31 months, with many Strike Force defendants receiving over 10 years."

"The Strike Force has become an important part of our arsenal in the fight against Health Care fraud in Miami," said U.S. Attorney Acosta. "By making a permanent commitment to bring these offenders to justice using real-time investigative and enforcement techniques, we will have an immediate impact on reducing fraud."

According to data from the Centers for Medicare and Medicaid Services (CMS), Miami-Dade County alone accounted for more paid DME claims than 44 states. Only some of the most populous states in the country including California, Texas, New York, Michigan, and Ohio billed Medicare for more than Miami-Dade County. According to that same data, an average Medicare patient in Miami-Dade County allegedly receives $6,200 worth of DME every year based on paid amounts; whereas patients throughout the rest of the United States average approximately $1,200 per year.