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Los Angeles Business Owner Sentenced to Federal Prison for Medicare Fraud

The owner of a Los Angeles medical supply company that fraudulently collected about  $2 million from Medicare for unneeded medical equipment has been sentenced to 57 months in federal prison. Marlon Palma was sentenced by a United States District Judge in Los Angeles.

She was the co-owner of Santos Medical Supply. She pleaded guilty in March 2010 to conspiracy to commit health care fraud. Palma admitted to fraudently bilking the Medicare program by submitting false claims for $5,000 power wheelchairs that were not necessary, and in some cases, they were never provided to the patients. She bought Medicare patient information and bogus prescriptions from a clinic and patient recruiters and then used the information to bill Medicare. Her company submitted nearly $3 million worth of fraudulent claims to Medicare. 

She was initially arrested in September 2008, after an criminal investigation by the Medicare Fraud Strike Force. This is a agency which  utilizes investigators from the  Federal Bureau of Investigation, the Department of Health and Human Services, Office of Inspector General's Fraud Section at the United States Department of Justice in Washington, and the United State’s Attorney’s Office in Los Angeles, California.

Five other people pleaded guilty or were convicted at trial:

  • Elsie Edmonds, pleaded guilty to a federal conspiracy charge;
  • Heber Gonzalez, pleaded guilty to a federal conspiracy charge. 
  • Kelechi Ajoku, jury conviction of making false statements. 
  • Leslie Duarte, pleaded guilty to federal conspiracy charge. 
  • Gloria Hernandez, pleaded guilty to a federal conspiracy charge. 

This investigation was conducted by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of the Inspector General.

Healthcare fraud is defined as the intentional deception of healthcare transactions by a provider, employer group, or member for the sake of receiving an unauthorized benefit or financial gain. If you are convicted of this federal crime, you could face imprisonment and substantial fines.

Many healthcare providers, including doctors and therapists, may inadvertently be pursued as having committed healthcare fraud due to billing errors used to determine how to bill an insurance company. An insured individual may pursue compensation for something he believes he has coverage, and then discover that they are not actually provided coverage and is now facing healthcare fraud charges. To protect yourself from the consequences of these federal criminal charges, it is important to obtain the services of a qualified Los Angeles healthcare fraud attorney.

If you are facing charges involving healthcare fraud, it is crucial to contact Federal crime lawyers at  Law Offices of Marks & Brooklier to develop a legal strategy for your defense. Federal crime attorneys  Donald Marks and  Anthony Brooklier have many  successful years of experience effectively representing our clients against federal crimes and will be happy to review your situation at no charge in our initial consultation. Just  call our office to set up a confidential meeting to discuss your specific situation.

Marks & Brooklier Los Angeles & Beverly Hills Federal Criminal Defense
Marks & Brooklier Los Angeles & Beverly Hills Federal Criminal Defense Attorneys
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