Medical Equipment Business Owner Pleads Guilty To Medicare Fraud

SAN DIEGO, CA — A Chula Vista man who owned multiple medical equipment companies pleaded guilty Tuesday to his part in a scheme to bill Medicare for millions of dollars in fraudulent claims.

Fernando Valenzuela Ayub, 48, admitted to paying kickbacks to companies that provided fake prescriptions for durable medical equipment sold by his companies, such as back, wrist or knee braces, according to the U.S. Attorney's Office.

Valenzuela ultimately billed Medicare for around $51 million and was paid about $20 million, according to prosecutors, who said he laundered $14 million of the proceeds. He also admitted paying $3.7 million in kickbacks for the bogus prescriptions.

Valenzuela pleaded guilty Tuesday in San Diego federal court to conspiring with others to launder the fraud proceeds. As part of his plea agreement, he will forfeit more than $7 million. He is scheduled to be sentenced in August.

— City News Service