A Florida nursing assistant, Christian “Chris” Cruz, was sentenced on April 13 to nine years in prison and two years of supervised release for his involvement in a health care fraud and wire fraud conspiracy that resulted in $11.4 million in false claims to Medicare. Cruz, age 45 and from Pompano Beach, was also ordered to pay over $3.7 million in restitution and more than $724,000 in forfeiture.
The case highlights the ongoing issue of health care fraud involving Medicare beneficiaries across the country. Authorities say such schemes undermine trust in medical professionals and put taxpayer-funded programs at risk.
According to court documents, Cruz owned and operated a durable medical equipment supplier based in Florida through which he submitted millions of dollars worth of fraudulent claims for medically unnecessary orthotic braces. Prosecutors said Cruz paid illegal kickbacks to obtain signed doctors’ orders that were then used to ship braces nationwide—even when recipients had not requested or needed them. He also concealed the true ownership structure of his company by claiming he was the sole owner while actually sharing control with a co-conspirator who is a convicted felon and remains at large.
Cruz received several hundred thousand dollars into his personal bank account from the scheme, often withdrawing cash just under reporting thresholds at various South Florida banks on consecutive days.
“Medical professionals have a trusted role in American society, and when they betray that trust and engage in fraud, the Justice Department will hold them fully accountable,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division.
“This was a deliberate health care fraud scheme built on lies, bribes, and abuse of the Medicare system,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “The defendant helped obtain signed doctors’ orders through illegal kickbacks, shipped braces people did not need, and then billed the government for more than $11.4 million in fraudulent claims. He also concealed the true ownership of the company and structured cash withdrawals to hide the proceeds.”
Acting Deputy Inspector General for Investigations Scott J. Lampert of The Department of Health and Human Services Office of Inspector General (HHS‑OIG) said: “By misusing Medicare beneficiaries’ information to enrich himself, this defendant betrayed the trust placed in health care providers... This sentence demonstrates how ... those who attempt to exploit federal health care programs will face serious consequences.”
After a six-day trial held this January, Cruz was convicted by a federal jury on multiple counts including conspiracy to commit health care fraud and wire fraud as well as structuring financial transactions.
FBI agents along with HHS-OIG investigated this case; prosecution was handled by Trial Attorney Owen Dunn from DOJ’s Fraud Section along with former Assistant U.S. Attorney Sterling Paulson.
The sentencing comes shortly after an announcement by The Department of Justice regarding its new National Fraud Enforcement Division focused on prosecuting those who steal or misuse taxpayer funds.
