Durable Medical Equipment Company Owner Sentenced to 144 Months in Medicare Fraud Scheme

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; John V. Gillies, 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 Inspector General, announced today that United States District Court Judge Joan Lenard sentenced defendant Yasmanny Benavides, 28, of Miami, Florida, to a term of 144 months’ imprisonment following his conviction at trial of health care fraud. The court also ordered restitution in the amount of $6,206,697, which represented the amount of Medicare funds stolen by the defendant.

According to the indictment and evidence admitted at trial, defendant Benavides controlled and operated Lacary Medical Services Equipment, Inc. 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.

According to statements made in court, Defendant Benavides then controlled and operated Lily Orthopedic, Inc. 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.

At sentencing, United States District Court Judge Joan Lenard noted the severe harm caused to the taxpayers as a result of defendant’s conduct in stealing over $6 million of funds dedicated to the care of the elderly and disabled, especially in light of the current health care funding issues that exist in this country.

Mr. Ferrer 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 U.S. 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.