The operators of a durable medical equipment company in Harlingen have pleaded guilty to defrauding Medicare, as announced by U.S. Attorney Nicholas J. Ganjei. The couple, Jeremiah Yzaguirre, 46, and Maria Luisa Yzaguirre, 45, ran Southwest Medical Homepatient, a business that participated in the Medicare program as a provider of medical equipment and services.
The couple admitted to receiving millions from Medicare for parts and repairs that were never carried out. Specifically, they acknowledged billing Medicare approximately $736,072 for parts and repairs for a single beneficiary, falsely claiming to have replaced expensive wheelchair parts numerous times. Additionally, the couple used the proceeds from the fraudulent activity to purchase cryptocurrency, a vehicle, electronics, collectibles, and purses.
The fraudulent activities led to Medicare billing of around $14 million for power wheelchairs, parts, and repairs for just 37 beneficiaries over the period from 2019 to 2023. "Medicare fraud is ultimately fraud against the taxpayer," stated Ganjei. "The Southern District of Texas will aggressively prosecute those who steal from their fellow citizens by defrauding public services."
U.S. District Judge Fernando Rodriguez Jr. is scheduled to impose sentencing on August 4. The Yzaguirres face up to 10 years in federal prison and a possible $250,000 fine. They have been allowed to remain on bond until sentencing.
The investigation involved the FBI, the Department of Health and Human Services-Office of Inspector General, Texas Health and Human Services - Office of Inspector General, Texas Attorney General's Medicaid Fraud Control Unit, and the Texas Department of Insurance. Assistant U.S. Attorneys Andrew Swartz and Ana Cano are prosecuting the case.