Chula Vista resident Fernando Valenzuela Ayub has entered a guilty plea in federal court, acknowledging his role in a scheme involving health care fraud and unlawful kickbacks. The plea agreement reveals that Valenzuela, along with others, operated multiple durable medical equipment (DME) companies. These companies sold orthotics to Medicare beneficiaries.
Valenzuela admitted to paying $3.7 million in illegal kickbacks to sham marketing firms for bogus prescriptions. His DME companies submitted fraudulent claims to Medicare, billing approximately $51 million and receiving about $20 million. He laundered at least $14 million of the proceeds and agreed to forfeit over $7 million as part of his plea.
Valenzuela's sentencing is set for August 15, 2025. Assistant U.S. Attorney Blanca Quintero is prosecuting the case in the Southern District of California.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services Office of Inspector General.
