A Florida businesswoman has pleaded guilty to participating in a scheme in New England and nationwide to fraudulently bill Medicare for $6.5 million, federal officials said Tuesday.
Evelyn Herrera, 62, of Loxahatchee, Florida, owned a durable medical equipment company called Merida Medical Supplies Inc., according to court documents.
After obtaining the identities of people residing in Vermont, across New England, and across the United States, Herrera, using Merida, “submitted fraudulent claims to Medicare for wrist, knee, and back braces that were never requested or received by patients,” Department of Justice officials said in a release.
In total, Merida fraudulently billed Medicare approximately $6.5 million, and Medicare paid Merida approximately $2.8 million based on those claims, officials said.
As part of the scheme, Herrera tried to hide the source of the funds generated fraudulently by Merida, officials said.
For example, prosecutors said Herrera transferred more than $300,000 in fraud proceeds to a cryptocurrency exchange and sent another $125,000 of illicit funds via international wire transactions for the purchase of a property in Tulum, Mexico.
After the Centers for Medicare and Medicaid Services issued a payment suspension letter to Merida for suspected fraud, prosecutors said Herrera withdrew large amounts of cash from a bank and transferred some of the funds to benefit herself and members of her family.
Herrera is scheduled to be sentenced on May 11. She faces a maximum penalty of five years in prison.
This is a developing story. Check back for updates as more information becomes available.
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