South Texas Doctor Charged with $240 Million Health Care fraud and International Money Laundering

[nitpicker]

https://www.justice.gov/usao-sdtx/pr/south-texas-doctor-charged-240-million-health-care-fraud-and-international-money
Department of Justice
U.S. Attorney’s Office
Southern District of Texas

FOR IMMEDIATE RELEASE
Monday, May 14, 2018

South Texas Doctor Charged with $240 Million Health Care fraud and International Money Laundering Scheme

Allegedly Administered Chemotherapy and Other Toxic Medications to Patients Based on False Diagnosis

McALLEN, Texas – A physician based in the McAllen area was charged in an indictment unsealed today for his role in a $240 million health care fraud and international money laundering scheme.
(snip)

Jorge Zamora-Quezada, 61, of Mission, was charged in a seven-count indictment filed in the Southern District of Texas. He was charged with one count of conspiracy to commit health care fraud, five counts of health care fraud and one count of conspiracy to commit money laundering. Zamora-Quezada had his initial court appearance earlier today. His detention hearing is set for tomorrow, May 15, at 2 p.m. before U.S. Magistrate Judge Peter E. Ormsby.
(snip)

As set forth in the indictment, from 2000 through the filing of the indictment, Zamora-Quezada and his co-conspirators falsely diagnosed vulnerable patients -- including the young, elderly and disabled, from the Rio Grande Valley, San Antonio and elsewhere -- with various degenerative diseases, including rheumatoid arthritis. He and his co-conspirators then administered chemotherapy and other toxic medications to the patients based on that false diagnosis. In addition to falsely diagnosing patients, Zamora-Quezada and his co-conspirators allegedly conducted a battery of fraudulent, repetitive and excessive medical procedures on patients in order to increase revenue and fund Zamora-Quezada’s lavish and opulent lifestyle.

The indictment alleges Zamora-Quezada and his co-conspirators flew in Zamora-Quezada’s million-dollar private jet or drove in his Maserati, which were both emblazoned with his initials “ZQ” between his offices in the Rio Grande Valley and San Antonio in order to perpetuate the fraud. He and his co-conspirators transferred the proceeds derived from the conspiracy to purchase private jets, luxury vehicles, clothing from high-end retailers such as Louis Vuitton and exclusive real estate located throughout the United States and Mexico. He and his co-conspirators allegedly obstructed investigations by causing the creation of false and fictitious patient records and concealed thousands of medical records from Medicare by stashing them in an unsecured and dilapidated barn located in the Rio Grande Valley.

The indictment also alleges Zamora-Quezada and his co-conspirators laundered the proceeds of their fraud scheme by dissipating, transforming and concealing the source and location of the fraud proceeds by investing such proceeds in commercial and residential real estate in the United States and Mexico. Among other properties, he and his co-conspirators acquired two penthouses in Puerto Vallarta, Mexico; a condominium in Aspen, Colorado; a condominium in Punta Mita, Mexico; and multiple homes and commercial properties located throughout Texas. He then created the false appearance of legitimate wealth and income by renting the various commercial and residential properties that he acquired to individuals and entities. Zamora-Quezada and his co-conspirators allegedly laundered the proceeds through a casa de cambio, or money exchange house, to various accounts maintained by financial institutions in Mexico. The indictment seeks the forfeiture of Zamora-Quezada’s personal jet, Maserati and multiple residential and commercial properties in the United States and Mexico.
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[Scarsdale]

1. Reading about the

fraud and abuse, how can politicians refuse to consider Universal Healthcare? The scam artists are defrauding the health services of millions of $$$, which could be used to install healthcare for everyone.

[47of74]

2. Trump's next HHS secretary

[Honeycombe8]

3. Horrible. This is criminal...he intentionally harmed people physically & mentally.

He actually put people under toxic treatments that would harm them. An evil person.

Always get a second opinion, but ins. may not pay for that. And there may not have been a reputable dr to give a 2nd opinion in that city.

How do you falsify a diagnosis, w/o the help of the lab? I wonder how he did this, and how he was caught?

[PatSeg]

4. I just finished watching the first season

of the TV show The Resident. Many in the healthcare community were highly critical of how unrealistic the show is and in some ways it is a bit over the top, but one of the main plot lines could have come straight out the headlines. I am often astonished at what people will do for money.

[KrazyinKS]

5. There was a doctor in Kansas City that was watering down a Chemo drug

It was a very expensive chemo drug, I think it was Paclitaxol (I will have to check that) as I remember it was the same drug I was one 20 years ago and at that time it was expensive. This doctor got caught watering it down and charging the original price for it making loads of money.