[00:00.0 - 00:03.2] Four individuals, including a Texas mayor [00:03.2 - 00:06.1] who was a licensed physician and medical director, [00:06.1 - 00:08.5] and three owners of a healthcare company [00:08.5 - 00:10.9] were charged in an indictment unsealed today [00:10.9 - 00:14.3] for their roles in a $150 million healthcare fraud [00:14.3 - 00:16.1] and money laundering scheme. [00:16.1 - 00:18.0] Three of the defendants were also charged [00:18.0 - 00:20.7] with counts relating to obstructing justice [00:20.7 - 00:23.0] and providing false statements. [00:23.0 - 00:25.7] Acting Assistant Attorney General John P.
Cronin [00:25.7 - 00:28.1] of the Justice Department's Criminal Division, [00:28.1 - 00:30.0] U.S. Attorney Ryan K. Patrick [00:30.0 - 00:32.0] of the Southern District of Texas, [00:32.0 - 00:34.5] Special Agent in Charge Christopher Combs [00:34.5 - 00:37.4] of the FBI's San Antonio Field Office, [00:37.4 - 00:39.9] and Special Agent in Charge C.J.
Porter [00:39.9 - 00:43.0] of the U.S. Department of Health and Human Services Office [00:43.0 - 00:46.2] of Inspector Generals, HHS-OIG, [00:46.2 - 00:48.5] Dallas region made the announcement. [00:48.5 - 00:52.2] Rodney Mesquias, 47, of San Antonio, Texas, [00:52.2 - 00:55.5] Henry McInnis, 47, of Harlingen, Texas, [00:55.5 - 00:58.9] Jose Garza, 40, of Harlingen, Texas, [00:58.9 - 01:02.2] and Francisco Pena, 82, of Laredo, Texas, [01:02.2 - 01:04.3] were charged in an 11-count indictment [01:04.3 - 01:06.6] filed in the Southern District of Texas.
[01:06.6 - 01:09.1] They were each charged with one count of conspiracy [01:09.1 - 01:10.7] to commit healthcare fraud [01:10.7 - 01:14.0] and one count of conspiracy to commit money laundering. [01:14.0 - 01:15.8] Mesquias and McInnis were charged [01:15.8 - 01:18.1] with six counts of healthcare fraud, [01:18.1 - 01:20.6] and Garza and Pena were each charged [01:20.6 - 01:22.7] with one count of healthcare fraud. [01:22.7 - 01:25.8] Pena was also charged with one count of false statements [01:25.8 - 01:29.3] and one count of obstruction of a healthcare investigation.
[01:29.3 - 01:31.5] Mesquias and McInnis were each charged [01:31.5 - 01:34.3] with one count of obstruction of justice. [01:34.3 - 01:37.4] As set forth in the indictment from 2009 [01:37.4 - 01:39.4] through the filing of the indictment, [01:39.4 - 01:41.0] Mesquias owned and controlled [01:41.0 - 01:43.5] the Merida Healthcare Group, Merida Group, [01:43.5 - 01:45.2] a collection of healthcare entities [01:45.2 - 01:46.9] located throughout the state of Texas [01:46.9 - 01:49.5] that provided hospice and healthcare services. [01:49.5 - 01:52.3] McInnis and Garza helped control, manage, [01:52.9 - 01:55.3] and oversee Mesquias' various entities.
[01:55.3 - 01:57.4] Pena, a licensed physician, [01:57.4 - 01:59.8] served as the mayor of Rio Bravo, Texas, [01:59.8 - 02:01.0] and as a medical director [02:01.0 - 02:03.6] for the Merida Group's affiliated entities. [02:03.6 - 02:06.0] According to allegations in the indictment, [02:06.0 - 02:08.8] Mesquias, McInnis, Garza, and Pena [02:08.8 - 02:11.3] participated in a healthcare fraud conspiracy [02:11.3 - 02:14.3] that involved over $150 million in Medicare billings [02:14.3 - 02:16.9] for hospice and home health services. [02:16.9 - 02:19.9] Mesquias, McInnis, and Garza caused kickbacks [02:19.9 - 02:22.3] and bribes to be paid to medical directors, [02:22.3 - 02:25.8] including Pena, for the Merida Group's affiliated entities [02:25.8 - 02:28.0] in exchange for certifying that patients [02:28.0 - 02:32.2] qualified for services when, in fact, they did not, [02:32.2 - 02:35.3] and for referring patients for such services.
[02:35.3 - 02:38.6] Mesquias, McInnis, Garza, and Pena [02:38.6 - 02:42.0] also fraudulently kept patients on hospice services [02:42.0 - 02:43.1] for multiple years [02:43.1 - 02:45.6] in order to increase revenue from Medicare. [02:45.6 - 02:47.7] The indictment also alleges that the scheme [02:47.7 - 02:50.7] involved laundering the proceeds of the fraud by, [02:50.7 - 02:54.3] for example, using nominees to conceal the identifies [02:54.3 - 02:56.2] of the true beneficial owners [02:56.2 - 02:58.7] of the Merida Group's affiliated entities [02:58.7 - 03:00.7] and causing profit distributions. [03:00.8 - 03:05.8] to be issued to the nominees to further conceal and disguise control of the fraud proceeds.
[03:05.8 - 03:10.9] The indictment further alleges that Mezquiaz and McInnes used proceeds derived from the scheme [03:10.9 - 03:16.8] to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end [03:16.8 - 03:22.8] retailers such as Louis Vuitton, exclusive real estate, and season tickets for premium seating [03:22.8 - 03:28.0] to see the San Antonio Spurs. The indictment alleges that Pina gave a false statement to the [03:28.0 - 03:34.2] FBI and obstructed a healthcare investigation. According to the allegations, a confidential [03:34.2 - 03:40.0] source, C.S., who worked in the healthcare industry, met with Pina at City Hall, the Office [03:40.0 - 03:45.9] of the Mayor for Rio Bravo, and elsewhere.
During these meetings, the C.S. allegedly paid Pina a [03:45.9 - 03:53.2] total of $5,000 in cash kickbacks for illegal referrals of hospice patients. In addition, [03:53.2 - 03:59.3] during the course of the investigation, Pina allegedly told a cooperating witness that, [03:59.3 - 04:04.9] with respect to hospice patients, the way you make money is by keeping them alive as long [04:04.9 - 04:11.1] as possible.
Thereafter, Pina was interviewed by the FBI and denied ever accepting kickbacks [04:11.1 - 04:17.5] in exchange for patient referrals. After the FBI interview, Pina then allegedly contacted the C.S. [04:17.5 - 04:22.4] and directed the C.S.
to mislead the FBI in the event that the C.S. was interviewed about the [04:22.4 - 04:28.4] cash kickbacks that Pina received in exchange for the illegal patient referrals. The indictment [04:28.4 - 04:34.7] also alleges that Mezquias and McInnes obstructed justice by producing false and fictitious records [04:34.7 - 04:40.4] to a federal grand jury.
As set forth in the indictment, a federal grand jury issued a subpoena [04:40.4 - 04:46.0] to the Merida Group for specific medical records. In response, Mezquias and McInnes allegedly [04:46.0 - 04:51.3] instructed their co-conspirators to manufacture false records and provide them to the federal [04:51.3 - 04:56.1] grand jury in order to obstruct the grand jury's investigation. An indictment is merely an [04:56.1 - 05:01.5] allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in [05:01.5 - 05:08.7] a court of law.
The case is being investigated by the HHS-OEG's McAllen Field Office, the FBI's [05:08.7 - 05:15.1] San Antonio Division, including the Laredo and McAllen Resident Agency Offices, and the Texas [05:15.1 - 05:20.0] Health and Human Services Commission. Trial attorney Kevin Lowell of the Criminal Division's [05:20.0 - 05:25.5] Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are [05:25.5 - 05:31.2] prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a [05:31.2 - 05:36.6] joint initiative between the Department of Justice and HHS to focus their efforts to prevent and [05:36.6 - 05:42.2] deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike [05:42.2 - 05:49.1] Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud [05:49.1 - 05:55.4] Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare [05:55.4 - 06:01.2] program for over $12.5 billion source OEG-HSGO.
