Durable Medical Equipment Company Owner Convicted in Medicare Fraud Scheme

Jeffrey H. Sloman, United States Attorney for the Southern District of Florida; John V. Gilles, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office; and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General, announced today that a federal jury found defendant Yasmanny Benavides, 28, of Miami, Florida, guilty of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349 (Count 1); and health care fraud, in violation of Title 18, United States Code, Section 1347 (Counts 2 through 4). Sentencing is scheduled before United States District Court Judge Joan Lenard on May 10, 2010.

According to the indictment and evidence admitted at trial, defendant Benavides controlled and operated Lacary Medical Services Equipment, Inc. (hereinafter, “Lacary Medical”) that purportedly did business in Miami-Dade County providing durable medical equipment to Medicare beneficiaries. From July 2003, through December 2003, Benavides as President, Secretary, and Registered Agent of Lacary Medical, caused the submission of false and fraudulent claims to Medicare on behalf of Lacary Medical, in the amount of $4,865,970, seeking reimbursement for the cost of DME items and services that were not prescribed by doctors or provided as claimed.

Defendant Benavides then controlled and operated Lily Orthopedic, Inc. (hereinafter, “Lily Orthopedic”) that purportedly did business in Miami-Dade County providing durable medical equipment to Medicare beneficiaries. From December 2003, through August 2004, Benavides and co-conspirator Reinaldo Guerra caused the submission of false and fraudulent claims to Medicare on behalf of Lily Orthopedic, in the amount of $14,555,868, seeking reimbursement for the cost of DME items and services that were not prescribed by doctors or provided as claimed.

Defendant Benavides came to the government’s attention during the investigation of All-Med Billing Corp.

Mr. Sloman commended the investigative efforts of the Federal Bureau of Investigation, and the U.S. Department of Health and Human Services, Office of the Inspector General. This case is being handled by Assistant United States Attorney Christopher J. Clark.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov.