U.S. Department of Justice Marcos Daniel Jiménez United States Attorney for the Southern District of Florida
	99 N.E. 4th Street Miami, FL 33132 (305) 961-9001

FOURTEEN DEFENDANTS CHARGED IN SCHEME TO DEFRAUD MEDICARE

Marcos Daniel Jiménez, United States Attorney for the Southern District of Florida; Linda Little, Special Agent in Charge, Department of Health and Human Services, Office of Inspector General; Brian J. Wimpling, Special Agent in Charge, Internal Revenue Service, Criminal Investigations; and James Belz, Postal Inspector in Charge, United States Postal Inspection Service, announced today the unsealing of a 324 count Indictment in Fort Lauderdale, Florida. Fourteen defendants, Ricardo Choi, Mark Anthony Mignott, Craig L. Marks, Elliott Housley, Maria Hernandez, Rosario Andino, a/k/a “Roscoe”, Shawn Frazer, Rene De Lamar, Gary Blumberg, Rosa Rodriguez, Ana Fernandez, Rosa Ginart, Alberto Gonzalez, and Norberto Malvarez, are charged with participating in a scheme to defraud Medicare of over $8 million.

If convicted, the defendants face various statutory maximum sentences ranging from five (5) years’ imprisonment to twenty (20) years’ imprisonment per count, and face fines of up to $16 million.

The Indictment alleges that three therapy companies owned by Choi, Mignott, and Housley paid kickbacks to assisted living facilities and to patient recruiters for access to patients. The therapy companies then billed Medicare for medically unnecessary and non-qualifying therapy. The assisted living facilities specifically named in the Indictment are Jene’s Retirement Living, Family Rest Home, Interamerican Boarding Home, and La Covadonga Retirement Living. The patient recruiters charged in the Indictment are Rodriguez, Fernandez, Ginart, and Gonzalez.

The Indictment also alleges that several physicians, including De Lamar and Blumberg, were paid kickbacks to order medically unnecessary or medically questionable therapy for the patients provided by the assisted living facilities and patient recruiters.

Additionally, the Indictment alleges that the scheme involved fraudulent billings to Medicare for treatments that were never performed, and the forging of physician orders and treatment notes.

The Indictment also alleges that several of the defendants destroyed medical records to thwart a Medicare audit of a related therapy company. The Indictment also alleges that several of the defendants altered and fabricated medical records after the government initiated a civil fraud case against the companies.

The Indictment also charges that defendant’s Choi, Mignott and Housley attempted to conceal the proceeds of the fraud on Medicare by transferring the money to off-shore accounts, to accounts in other names, or through shell companies. The Indictment also charges that Choi, Mignott, and Housley made extravagant purchases of exotic cars, large houses and jewelry with the fraudulently obtained Medicare funds.

Mr. Jiménez commended the investigative efforts of the Health and Human Services, Office of Inspector General, the Internal Revenue Service, Criminal Investigations, and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Robert N. Nicholson.

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