DME Supplier Pleads Guilty to $11M Medicare Fraud Scheme

A durable medical equipment provider pleaded guilty Nov. 21 to one count of healthcare fraud in the U.S. District Court for the Southern District of Florida in a scheme the Justice Department says defrauded Medicare of more than $11 million.

Francisco Enrique Chávez was indicted for healthcare fraud, aggravated identity theft and criminal forfeiture in February 2011. His now-defunct company, World Class Medical Services, sold durable medical equipment such as pressure support ventilators, motorized wheelchairs and enteral formula that were not medically necessary and lacked a legitimate physician’s prescription.

Between March 27 and Aug. 22, 2006, Chávez submitted $11.3 million in false claims using fraudulent or stolen Unique Physician Identification numbers. Medicare paid out about $1.7 million to World Class’ corporate bank accounts, which Chávez raided, moving the money into personal and shell entity bank accounts.

The case was brought by the Medicare Fraud Strike Force under the auspices of the FBI, the OIG’s criminal division fraud section and the U.S. Attorney’s Office for the Southern District of Florida.

Chávez fled to Spain, but was captured and extradited back to Miami in August of this year. He faces up to 10 years in prison. — Lena Freund

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