South Florida Man Sentenced to Four Years in a $10.5 Million Medicare Fraud Scheme By Tod Aronovitz | 07/17/14 | 0 Comment

On our January 28 ARONOVITZ LAW Blog, we reported on a South Florida man who pleaded guilty to a Medicare fraud scheme. The scam involved $10.5 million in false claims for reimbursement at the outpatient rehabilitation facility he operated—Renew Therapy Center of Port St. Lucie.

That man—Luis Alberto Garcia Perojo (Garcia)—has now been sentenced to serve 48 months in prison, according to an announcement by the U.S. Department of Justice. In addition to his prison term, which was handed down in federal court in Tampa on July 11, the 43-year old will have to serve three years of supervised release and was ordered to pay $6,248,056 in restitution, jointly and severally, with his co-conspirators.

According to court documents, Garcia conspired with others to execute a health care fraud scheme through Renew Therapy that included submitting $10,549,361 in fraudulent billings to Medicare for therapy services that were not legitimately prescribed or provided to Medicare beneficiaries.

As a result of fraudulent claims from November 2007 through August 2009, Medicare deposited $6,248,056 into a Renew Therapy bank account. The fraud proceeds were then distributed to various entities, including $1,847,222 to Ariguanabo Investment Group Inc. and IRE Diagnostic Center Inc.

At the time, Garcia was also President of Ariguanabo Investment Group giving him authority over bank accounts for both Ariguanabo Investment Group and IRE Diagnostic Center. Both were shell companies that used the money to pay out kickbacks to procure Medicare beneficiary information that was then used to make additional fraudulent reimbursement claims through Renew Therapy.

How to Report Miami Medicare Fraud

Healthcare professionals or medical billing employees who have knowledge of questionable Medicare billing practices can file a confidential legal claim under the False Claims Act. By acting as a “whistleblower” in what is known as a “qui tam” lawsuit, a private party may collect up to 30 percent of the amount recovered, depending on how the case is prosecuted.

ARONOVITZ LAW: Miami Whistleblower / Qui Tam Law Firm

The Miami Qui Tam law firm of ARONOVITZ LAW routinely works with whistleblowers to document Medicare fraud and other forms of fraud against the government. Contact Miami Whistleblower / Qui Tam lawyer Tod Aronovitz to discuss your case.