Another RGV Durable Medical Equipment Company Owner Indicted for Health Care Fraud

McALLEN, Texas ‐ The owner of a Rio Grande Valley area durable medical equipment (DME) company has been arrested for her scheme to defraud Texas Medicaid through fraudulent billings, announced U.S. Attorney Kenneth Magidson.

A federal grand jury in McAllen indicted Anna Ramirez Ambriz, 55, of McAllen, on Jan. 17, 2017. Authorities arrested her today. She is scheduled to make her initial appearance before U.S. Magistrate Judge Peter Ormsby tomorrow at 9:00 a.m.

Ambriz was the owner and/or operator of Compassionate Medical Supply. The indictment alleges Ramirez-Ambriz and the company submitted false and fraudulent claims to Texas Medicaid for DME that was not provided. According to the indictment, Compassionate Medial Supply billed for incontinence supplies that were either not delivered or only partially delivered to Texas Medicaid recipients. Ramirez-Abmriz also allegedly used identities of Medicaid recipients in submitting unlawful billings to Texas Medicaid.

Based on allegations in the indictment, from on or about Jan. 5, 2007, through Nov. 19, 2013, Ramirez-Ambriz and Compassionate Medical Supply sent false and fraudulent claims totaling approximately $4,536,152.26 to Texas Medicaid for DME allegedly provided to Texas Medicaid recipients. The billings were false and fraudulent because the DME was not delivered as claimed, according to the charges. Texas Medicaid allegedly paid out $3,143,149.41 on the false and fraudulent claims.

According to the indictment, Ramirez-Ambriz also submitted or caused others to submit false or fraudulent claims with Texas Medicaid for DME not authorized by a physician. Additionally, Compassionate Medical Supply allegedly billed for more incontinence supplies than it purchased from distributors.

She is charged with six counts of health care fraud for which she faces a maximum punishment of 10 years in federal prison and a $250,000 fine upon conviction. She is also charged with three counts of aggravated identity theft which carries a mandatory 24 months in prison which must be served consecutively to any other prison sentence imposed.

The Texas Attorney General’s Medicaid Fraud Control Unit, FBI and Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.