Nicholas J. Ganjei United States Attorney for the Southern District of Texas | U.S. Attorney for the Southern District of Texas
The operators of Southwest Medical Homepatient, a durable medical equipment company, have pleaded guilty to defrauding Medicare, announced U.S. Attorney Nicholas J. Ganjei. Jeremiah Yzaguirre and his wife, Maria Luisa Yzaguirre, both from Harlingen, admitted they received millions of dollars for parts and repairs that were not provided. The company, involved in Medicare as a provider of equipment and services, claimed to offer parts and repairs for power wheelchairs.
The couple admitted to billing Medicare approximately $736,072 for parts and repairs relating to a single beneficiary, fraudulently claiming they replaced costly parts multiple times. They used the fraud proceeds to buy cryptocurrency, a vehicle, electronics, collectibles, and purses.
Medicare was billed approximately $14 million for power wheelchairs, parts, and repairs for just 37 beneficiaries between 2019 and 2023 due to their fraudulent scheme. "Medicare fraud is ultimately fraud against the taxpayer," said 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. will sentence the couple on Aug. 4. The Yzaguirres each face up to 10 years in federal prison and a possible fine of up to $250,000. They remain on bond until sentencing.
The FBI, Department of Health and Human Services-Office of Inspector General (OIG), Texas Health and Human Services - OIG, Texas Attorney General - Medicaid Fraud Control Unit, and Texas Department of Insurance conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Ana Cano are handling the prosecution.
