Corporate Compliance

Three TX residents charged in DME Medicare, Medicaid fraud scheme

Compliance Monitor, February 17, 2010

A federal jury convicted two owners of a Texas DME company and one orthotist for their roles in a $1.2 million Medicaid and Medicare fraud scheme, according to the San Antonio Express.
Marguerite Jeanette Garcia, 43, and her husband, Eleazar “Eli” Garcia, 52, owners of Orthopedic Specialists DME Inc. in Corpus Christi, TX, were indicted on charges of operating their company without a licensed orthotist. According to the San Antonio Express, Orthopedic lost its Medicare provider number in 2002, and shortly after the company recruited John D. Martinez, 50, and his brother, Frank D. Martinez, 46, licensed orthotists and owners of San Antonio’s Orthotics & Artificial Limbs, to pose as on-site orthotists so the company could regain its accreditation.
The Martinez’s company received $643,000 of the $800,000 the Garcia’s collected from Medicare and Medicaid. A jury acquitted Frank Martinez of all charges. Marguerite and Eli Garcia and John Martinez face up to 10 years in prison and a $250,000 fine.

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