Florida Man Sentenced for Role in $57 Million Medicare Fraud Scheme

Florida Man Sentenced for Role in $57 Million Medicare Fraud Scheme

The owner and manager of three now-defunct Miami-area home health agencies was sentenced to 240 months in prison for his role in a $57 Medicare fraud scheme.

Khaled Elbeblawy, 40, of Miramar, Florida, was sentenced by U.S. District Judge Beth Bloom of the Southern District of Florida, who also ordered Elbeblawy to pay approximately $36,400,957 in restitution and to forfeit the same amount. On Jan. 21, 2016, Elbeblawy was convicted after a two-week trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay health care kickbacks.

According to evidence presented at trial, Elbeblawy managed Willsand Home Health Agency Inc. (Willsand) and owned JEM Home Health Care LLC (JEM) and Healthy Choice Home Services Inc. (Healthy Choice). The evidenced showed that through these three entities, from approximately 2006 to 2013, Elbeblawy and his co-conspirators purported to provide home health services to Medicare beneficiaries in the Miami area, which were not medically necessary and often were never even provided. Elbeblawy and his co-conspirators paid kickbacks to doctors, patient recruiters and staffing groups, which, in exchange, referred beneficiaries to Willsand, JEM and Healthy Choice, the evidence showed.

Evidence presented at trial showed that the three agencies submitted a total of approximately $57 million in false and fraudulent claims to Medicare, and received payments totaling approximately $40 million on those claims.

On Oct. 15, 2012, Eulises Escalone, the former owner of Willsand and the former co-owner of JEM, was sentenced to 10 years in prison after pleading guilty to one count of conspiracy to commit health care fraud. Cynthia Vilches, the former co-owner of Healthy Choice,was charged by information and pleaded guilty to one count of conspiracy to commit health care fraud. Vilches in scheduled to be sentenced on Oct. 13, 2016.

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