FOR IMMEDIATE RELEASE                                                                        CRM

MAY 2, 2008                                                               (202) 514-2007

WWW.USDOJ.GOV                                                                      TDD (202) 514-1888

SAN JUAN, P.R. - On May 1st, 2008, a grand jury returned 27-count indictment charging four doctors and two other individuals of conspiracy, health care fraud in the amount of $922,882.00, soliciting and receiving kickbacks in relation to the Medicare Program, false statements and forfeiture allegations, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The defendants were arrested today by agents of the lead investigative agency, the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG) with the collaboration of the Federal Bureau of Investigation (FBI).

Doctor's Medical Supplies was a durable medical equipment (DME) company authorized to do business in Puerto Rico with its business office located in Luquillo, Puerto Rico, and registered as an authorized Medicare Part B DME supplier. Doctor's Medical Supplies submitted claims to Medicare, seeking reimbursements for DME, including oxygen services, motorized wheelchairs, and hospital beds, that were allegedly provided and medically necessary. During the time period listed in the indictment, Doctor's Medical Supplies submitted false claims for DME and received approximately NINE HUNDRED TWENTY-TWO THOUSAND EIGHT HUNDRED EIGHTY-TWO DOLLARS ($922,882.00) in Medicare reimbursements.

The main defendant, Rabindranaut Amrud-Ríos, also known as Rabin, submitted and caused the submission of false and fraudulent claims to Medicare. He is the owner and president of Doctor's Medical Supplies. Amrud-Rios oversaw the business and financial operations of Doctor's Medical Supplies. The "Physician Signers," as used in the Indictment, would sign prescriptions and certificates of medical necessity (CMNs) and were paid kickbacks by Amrud-Rios to sign the false CMNs. Amrud-Rios along with the other defendants listed in the indictment falsely and fraudulently represented that the medical conditions of the Medicare beneficiaries were such that DME, which included oxygen services, power wheelchairs, and hospital beds, were medically necessary when in fact the Medicare beneficiaries were either dead or did not suffer from such medical conditions and did not qualify to receive the DME under the Medicare regulations.

The names of the four doctors involved in the conspiracy are: Jaime Belardo, Narciso Reyes-Carrillo, José Figueroa-Pacheco, and Rafael Esteva-Heal. Also charged is Gladys Avilés, an employee of Doctor's Medical Supplies. The licenced doctors are charged with signing blank or previously completed false prescriptions and CMNs for Doctor's Medical Supplies. Each of the doctors was paid kickbacks by co-defendant Amrud-Ríos in exchange for signing blank or previously completed false CMNs for Doctor's Medical Supplies. Defendant Gladys Avilés was the employee of Doctor's Medical Supplies who completed blank and false CMNs for Doctor's Medical Supplies and submitted claims to Medicare based on those false CMNs.

"We cannot allow professionals in the medical services field to illegally enrich themselves at the expense of the beneficiaries of the Medicare Program in Puerto Rico. We will investigate and prosecute those who, through their fraudulent actions, jeopardize the availability of the important services that Medicare Program provides to so many people in Puerto Rico," said US Attorney Rosa Emilia Rodríguez-Vélez. "The US Attorney's Office and HHS-OIG will continue working together to ensure that federal program funds are used to provide the medical services to which its beneficiaries in Puerto Rico are entitled."

"OIG and its law enforcement partners take allegations of Medicare and Medicaid fraud very seriously, including fraud within the DME industry," said Gary Heuer, a Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General. "We continue our vigilance and will use all available resources in detecting and investigating those who defraud these valuable programs and jeopardize vulnerable Medicare and Medicaid beneficiaries"

Penalties for the offenses alleged in the indictment range up to 20 years of imprisonment and fines of up to $250,000. The indictment also includes a forfeiture allegation that seeks to forfeit from the defendants assets in the amount of $992,882.00, which is the loss to Medicare as a result of the fraudulent claims.

The investigation was conducted by the Department of Health and Human Services, Office of Inspector General with the collaboration of the FBI. The case is being prosecuted by Assistant United States Attorney Julia Díaz-Rex.

Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.