Florida business owner pleads guilty in $6.5 million Medicare fraud case.
A Florida health care executive has admitted to taking part in a large Medicare fraud scheme that sent millions of dollars in false claims through a medical supply company. Federal prosecutors said the case involves years of billing for medical equipment that patients never asked for and never received. The guilty plea was entered in federal court in Vermont and marks another case in the government’s ongoing effort to crack down on health care fraud.
The defendant, Evelyn Herrera, is 62 years old and lives in Loxahatchee, Florida. Court records show that she was a medical supply company owner, operating Merida Medical Supplies Inc., which sold durable medical equipment. Prosecutors said Herrera used personal information from people living in Vermont, across New England, and in other parts of the country to submit claims to Medicare for braces that were not ordered by doctors and not delivered to patients.
According to investigators, the company billed Medicare for wrist, knee, and back braces that were never provided. In total, Merida Medical Supplies submitted about $6.5 million in false claims. Medicare paid the company approximately $2.8 million before the activity was flagged. Federal officials said the scheme relied on using patient names and information without proper approval, allowing the company to collect payments for equipment that had no medical purpose.
Prosecutors said Herrera also took steps to move and hide the money once it was paid. Court filings describe several efforts to shift funds away from accounts tied directly to the company. Investigators said more than $300,000 from the fraud was transferred to a cryptocurrency exchange. Another $125,000 was sent through international wire transfers connected to the purchase of property in Tulum, Mexico.
After federal health officials issued a payment suspension notice to Merida Medical Supplies due to suspected fraud, Herrera allegedly moved even more money. According to court documents, she withdrew large amounts of cash from a bank account and transferred funds for her own use and for the benefit of family members. Prosecutors said these actions were meant to secure the money before further government action could take place.
Herrera pleaded guilty to participating in a conspiracy to pay health care kickbacks. Under federal law, this type of offense carries a maximum prison sentence of five years. She is scheduled to be sentenced on May 11. The final sentence will be determined by the court and could also include financial penalties and restitution.
Federal officials said cases like this harm both taxpayers and patients. Medicare is funded through public dollars, and fraudulent claims reduce resources meant for legitimate care. Investigators also stressed that using patient identities without proper consent can expose individuals to long-term issues, including incorrect medical records and billing problems.
The case was announced by officials from the Justice Department’s Criminal Division, along with leaders from the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. These agencies worked together to investigate the billing practices and financial transactions tied to the company. Prosecutors from the Justice Department’s Fraud Section are handling the case.
Authorities said this prosecution is part of a broader national effort to address health care fraud. Since 2007, the Health Care Fraud Strike Force Program has charged thousands of defendants across the country. According to federal data, those cases involve tens of billions of dollars in fraudulent billing to public and private health insurance programs.
Officials said the government continues to focus on medical supply companies, clinics, and executives who misuse the Medicare system. They emphasized that even companies operating far from the patients whose information they use can still face charges in federal court. Prosecutors said the guilty plea sends a clear signal that health care fraud, including kickback schemes and false billing, will be investigated and punished.
Federal agencies said the case also highlights how financial tracking, including monitoring bank activity and international transfers, plays a key role in uncovering fraud. Investigators noted that attempts to move money through cryptocurrency or foreign property purchases do not shield individuals from prosecution. They stressed that cooperation between agencies is essential in following complex money trails.
Herrera remains free while awaiting sentencing. Federal officials said the court will consider the scope of the fraud, the financial losses, and her actions after the scheme was uncovered when determining her sentence.
Sources:
Health Care Executive Pleads Guilty to Kickback Scheme in Vermont
New England authorities charge six individuals in multi-million dollar healthcare fraud crackdown
Join the conversation!