Florida nursing assistant convicted in $11.4 million Medicare fraud scheme
A federal jury in Fort Lauderdale has convicted Christian "Chris" Cruz, 45, a nursing assistant from Pompano Beach, Florida, for his role in a sweeping $11.4 million health care fraud and wire fraud scheme. The elaborate operation involved shipping thousands of medically unnecessary orthotic braces to Medicare beneficiaries across the country and billing taxpayers for the cost.
According to evidence presented at trial, Cruz owned and operated a Florida-based durable medical equipment (DME) supplier through which he submitted millions of dollars in false claims to Medicare. Cruz and his co-conspirator paid illegal kickbacks and bribes to acquire signed doctors' orders for the braces. These orders were then used to bill Medicare for equipment that recipients neither requested nor needed, exploiting the identities of hundreds of unsuspecting seniors.
Authorities revealed that Cruz lied to Medicare, concealing the involvement of his co-conspirator—a convicted felon—in the company's ownership. Had Medicare known about the co-conspirator's role, the company would not have been eligible for participation in the program. The co-conspirator has been charged but remains at large.
Cruz personally profited from the scheme, receiving several hundred thousand dollars into his own bank account. Financial records show he withdrew large sums in cash on consecutive days at different bank branches across South Florida, often in amounts just below the $10,000 threshold that triggers mandatory bank reporting.
"Healthcare fraud is not a paperwork offense — it is a crime that steals from seniors and undermines confidence in our healthcare system," said U.S. Attorney Jason A. Reding Quiñones. "This defendant was a licensed nurse who chose greed over duty, exploiting Medicare beneficiaries through a deliberate $11.4 million fraud scheme. The jury's verdict makes clear that medical professionals who abuse their positions of trust for personal gain will face serious consequences."
Cruz was convicted of one count of conspiracy to commit health care fraud and wire fraud, four counts of health care fraud, one count of conspiracy to defraud the United States and make false statements relating to health care matters, and three counts of structuring financial transactions to evade reporting requirements. He faces up to 125 years in prison and is scheduled for sentencing on April 13. A federal district court judge will determine his sentence based on federal guidelines and statutory factors.
The case was investigated by the FBI Miami Field Office and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Assistant U.S. Attorney Sterling Paulson and Trial Attorney Owen Dunn prosecuted the case.
The conviction is part of a broader effort by the Justice Department's Health Care Fraud Strike Force, which has charged more than 5,800 defendants and uncovered over $30 billion in fraudulent billings since its inception in 2007. HHS-OIG and the Centers for Medicare & Medicaid Services continue to take steps to hold providers accountable for health care fraud nationwide.
More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.