Chula Vista Man Pleads Guilty in $51 Million Medicare Fraud Scheme

SAN DIEGO – Chula Vista resident and businessowner Fernando Valenzuela Ayub pleaded guilty in federal court today, admitting that he conspired with others to launder millions of dollars of health care fraud proceeds and paid unlawful kickbacks. According to his plea agreement, Valenzuela and co-conspirators owned and operated multiple durable medical equipment (DME) companies, which sold orthotics – including back, wrist, and knee braces – to Medicare beneficiaries. Valenzuela admitted that in operating the DME companies, he and co-conspirators paid unlawful kickback payments to sham marketing companies who provided bogus prescriptions for DME. In total, Valenzuela paid $3.7 million in kickbacks.

Read more on www.justice.gov

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