Posted: Jun 28, 2012 11:23 PM
Updated: Aug 7, 2012 7:53 AM
EDINBURG - The U.S. Attorney's Office has indicted four Valley residents on several counts of Medicare fraud involving millions of dollars. All four worked for RGV DME LLC in Pharr.
CHANNEL 5 NEWS investigated the company back in 2008. On February 23, 2010 two years after our investigation federal agents raided the company.
Today's indictments focus on the owner of the company, his wife, and two former employees. All four face 22 counts of Medicare fraud.
The CHANNEL 5 NEWS investigation focused on RGV DME LLC and power chairs. An informant told us the company would order power chairs for people who didn't need them, pay $700 for each power chair and get reimbursed as much as $5,000 by Medicare.
The federal indictment says the company was paid more than $7.1 million in claims. The government now says most of those claims were fraudulent. Two of the defendants mentioned in the case will go before a judge on Friday.