Harlingen couple admits guilt in Medicare fraud scheme

BROWNSVILLE, Texas (ValleyCentral) — A husband and wife who operated a durable medical equipment (DME) company pleaded guilty to defrauding Medicare, announced U.S. Attorney Nicholas J. Ganjei.

Jeremiah Yzaguirre, 46, and his wife, Maria Luisa Yzaguirre, 45, both of Harlingen, operated Southwest Medical Homepatient. Their business was enrolled in the Medicare program as a provider of DME and services. They claimed to provide parts and repairs for power wheelchairs, among other services.

As part of their pleas, the couple admitted they received millions of dollars for parts and repairs that were never performed or provided. They acknowledged billing Medicare approximately $736,072 for parts and repairs for one specific beneficiary, falsely claiming to have replaced expensive parts hundreds of times, according to documents.

In addition, they admitted to using the proceeds from the fraud to purchase cryptocurrency, a vehicle, electronics, miscellaneous collectibles, and purses.

As a result of their fraud, Medicare was billed around $14 million for power wheelchairs, parts, and repairs for just 37 Medicare beneficiaries between 2019 and 2023.

“Medicare fraud is ultimately fraud against the taxpayer,” said Ganjei. “The Southern District of Texas will aggressively prosecute those who steal from their fellow citizens by defrauding public services.”

On Aug. 4, U.S. District Judge Fernando Rodriguez Jr. will impose sentencing, and the Yzaguirres face up to 10 years in federal prison and a possible $250,000 maximum fine.

Both were permitted to remain on bond pending sentencing.