Harlingen couple guilty in multimillion-dollar Medicare fraud scheme

BROWNSVILLE, Texas – The operators of a durable medical equipment (DME) company have 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 a business called Southwest Medical Homepatient. The business was enrolled in the Medicare program as a provider of DME and services. It 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 both acknowledged billing Medicare approximately $736,072 for parts and repairs for one specific beneficiary, falsely claiming to have replaced expensive parts hundreds of times.

They also admitted to using the proceeds from the fraud to purchase cryptocurrency, a vehicle, electronics, miscellaneous collectibles and purses.

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

“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.”

U.S. District Judge Fernando Rodriguez Jr. will impose sentencing Aug. 4. At that time, 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.

The FBI, Department of Health and Human Services-Office of Inspector General (OIG), Texas Health and Human Services - OIG, Texas Attorney General - Medicaid Fraud Control Unit and Texas Department of Insurance conducted the investigation.

Assistant U.S. Attorneys Andrew Swartz and Ana Cano are prosecuting the case.