A Chula Vista, Calif., man who owned and operated multiple durable medical equipment companies pleaded guilty to his role in a $51 million Medicare fraud scheme.
What happened?
Fernando Ayub, 48, and his co-conspirators sold orthotics to Medicare beneficiaries and paid kickbacks to sham marketing companies that provided fraudulent prescriptions for durable medical equipment, according to a May 27 Justice Department news release. In total, he paid $3.7 million in kickbacks.
He admitted that he used the companies to submit fraudulent claims to Medicare, according to the release. Once his companies were suspended from billing Medicare, he conspired to put the companies in the names of nominee owners while he maintained control.
In total, he billed Medicare approximately $51 million and was paid approximately $20 million, and ultimately laundered $14 million of the Medicare proceeds.
What’s next?
Mr. Ayub pleaded guilty to money laundering conspiracy and faces up to 20 years in prison and a $500,000 fine. He is scheduled to be sentenced Aug. 15.
As part of his guilty plea, Mr. Ayub agreed to forfeit more than $7.1 million.
