Owners of Oklahoma City diabetic supply company sentenced for Medicaid fraud

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OKLAHOMA CITY – A metro husband and wife have been sentenced to prison and have been ordered to pay $268,796.70 in restitution to the state’s Medicaid program.

The duo was previously charged with 115-counts of Medicaid fraud by a federal grand jury.

U.S. District Judge Stephen P. Friot sentenced Lawrence Vasquez, 62, to 20 months in federal prison and three years of probation. His wife Eunja Vasquez, 56, was sentenced to five years of probation and 15 days of weekend incarceration.

They plead guilty in summer 2018 to submitting fraudulent claims for unnecessary medical supplies to Medicaid beneficiaries through their Edmond company, Mercy Diabetic Supply Inc. (Mercy Diabetic Supply is not affiliated with Mercy Health System).

The Vasquezes were charged in December 2017. Investigators found the couple were falsifying Medicaid claims for insulin pump supplies for patients who didn’t use insulin pumps for treating diabetes. Some of the claims the couple filed were for patients who didn’t have diabetes.

Investigators also found the couple falsified medical forms and forged physician signatures as part of their unlawful operation.

“The state’s Medicaid program is designed to help men, women and children in need,” Attorney General Mike Hunter said. “Through strong state – federal partnerships, like the one with the U.S. Attorney’s Office, we will continue to crack down on those exploiting the system and hold them accountable. I appreciate the work by the Medicaid Fraud Control Unit in my office, as well as the U.S. Attorney’s Office, led by Robert J. Troester, for the help in successfully prosecuting this case.”

A copy of the indictment can be found, here: http://bit.ly/2jfakV7.

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