BROWNSVILLE, Texas — A Harlingen couple behind a durable medical equipment (DME) company has pleaded guilty to orchestrating a massive Medicare fraud scheme that bilked taxpayers out of millions of dollars, federal prosecutors announced this week.
Jeremiah Yzaguirre, 46, and Maria Luisa Yzaguirre, 45, admitted in federal court that they submitted fraudulent claims through their company, Southwest Medical Homepatient, which was enrolled as a Medicare provider. While they claimed to provide repairs and parts for power wheelchairs, prosecutors say the work was never actually performed.
According to court documents, the couple billed Medicare $14 million for supposed services provided to just 37 beneficiaries between 2019 and 2023. In one egregious example, they charged the government $736,072 for wheelchair parts and repairs for a single Medicare recipient — claiming to have replaced expensive components hundreds of times.
Instead of using the funds to operate a legitimate business, the Yzaguirres funneled the fraudulent proceeds into cryptocurrency, vehicles, electronics, luxury handbags, and collectibles, court filings revealed.
“Medicare fraud is ultimately fraud against the taxpayer,” said U.S. Attorney Nicholas J. Ganjei. “The Southern District of Texas will aggressively prosecute those who steal from their fellow citizens by defrauding public services.”
The Yzaguirres each face up to 10 years in federal prison and a potential $250,000 fine. They are scheduled to be sentenced on August 4 by U.S. District Judge Fernando Rodriguez Jr. Both defendants remain free on bond while awaiting sentencing.
