Florida Man Convicted for Orchestrating $10.9 Million Medicare Fraud Scheme

TAMPA, FL – A Palm City man has been convicted in federal court for leading a multimillion-dollar scheme to defraud Medicare, in a case that underscores the government’s continued crackdown on healthcare fraud.

Lino Mallari Gutierrez, 59, also known as “Joe Gutierrez,” was found guilty by a federal jury of multiple charges including conspiracy to commit healthcare and wire fraud, conspiracy to violate the anti-kickback statute, five counts of healthcare fraud, and four counts of illegal kickbacks. He now faces up to 20 years in federal prison.

Following the verdict, Gutierrez was immediately remanded into custody.

According to court testimony and evidence, Gutierrez and his co-conspirators owned and operated two fraudulent durable medical equipment (DME) companies that billed over $10.9 million to Medicare for unnecessary orthopedic braces and other medical equipment. More than $5 million was paid out.

The scheme involved kickbacks to marketing firms, which used telemarketing call centers to target Medicare beneficiaries and obtain doctor’s orders through telemedicine companies—often for patients who never needed or requested the devices.

Once these fraudulent prescriptions were secured, Gutierrez’s companies would bill Medicare for the equipment.

To hide his involvement, Gutierrez listed the DME companies under the names of straw owners, effectively concealing his financial and operational control. Authorities revealed that he falsified records submitted to his employer and to a regulatory body to hide his true role.

When the fraud was uncovered through a national healthcare fraud sweep, Gutierrez was already setting up four additional sham DME companies, including one under his mother’s name and two under friends’ names, intending to continue the scheme.

Upon learning of law enforcement action, Gutierrez moved stolen Medicare funds to other accounts in an effort to shield the money. “This verdict sends a clear message,” said U.S. Attorney Gregory W. Kehoe. “Those who try to enrich themselves by defrauding taxpayer-funded healthcare programs will be caught and prosecuted to the fullest extent of the law.”