Former Valley Commissioner Convicted of Medical Fraud
MCALLEN – A former Pharr city commissioner faces up to 10 years behind bars for medical fraud.
A federal court convicted Oscar Elizondo on fraud charges for his part in a scheme that swindled more than $1.7 million from Blue Cross/Blue Shield of Texas.
Elizondo worked as a marketer for Penitas Family Pharmacy, also known as Riverside Pharmacy.
He targeted employers that offered Blue Cross insurance, including the city of Pharr and Point Isabel School District.
Elizondo convinced employees to hand over their insurance information in exchange for “free prescriptions.”
He and co-conspirators would then use the information to bill Blue Cross for prescriptions never asked for or received by patients.
Some of the prescriptions were written by doctors, who then received kickbacks.