Miami Clinic Owner Charged with $38M Healthcare Fraud

Armando Valdes, the owner and operator of a medical clinic in Miami, Florida, was arrested on Dec. 10 and charged with submitting approximately $38 million in fraudulent health care claims to United Healthcare and Blue Cross Blue Shield (BCBS), according to the US Department of Justice (DOJ).

Valdes ran Gasiel Medical Services, Corp. in Miami-Dade County, and allegedly benefited from submitting false claims to major private insurers for supposedly treating patients from arthritis, inflammations, and ulcers.

How did Gasiel Medical Services Operate?

Mr. Valdes allegedly falsely billed United Healthcare and BCBS for medically unnecessary infusions of Infliximab, known by the brand name Remicade, through his medical clinic Gasiel Medical Services. Remicade is an expensive prescription immunosuppressive drug used to treat several autoimmune diseases. The medication was not provided to patients as billed.

“The indictment alleges that United and Blue Cross paid Gasiel nearly $8 million as a result of the fraudulent claims for Infliximab submitted by Valdes,” reads the press release published by the DOJ.

Gasiel Medical Services owner allegedly ran his scheme from Feb. 2015 to July 2021 and is now charged with 10 counts of health care fraud as the Federal Government is stepping up the crackdown on alleged fraud in the healthcare industry.

The 10 counts of health care fraud each carry a maximum of 10 years per count, making the maximum sentence faced by Mr. Valdes up to 100 years in prison if convicted, according to the Justice Department.

How did Mr. Valdes Spend the Proceeds?

The DOJ investigation uncovered that Mr. Valdes spent millions of dollars made through false claims on Florida properties.

“According to the indictment, Valdes used his ill-gotten proceeds to purchase four real estate properties, including a beachfront condo in Pompano Beach, as well as luxury vehicles including a Cadillac Escalade and a Tesla Model S,” the press release reads.

The records showed that the clinic owner purchased a three-bedroom condo at Sabbia Beach, a one-bedroom Aventura ParkSquare unit, a four-bedroom house in Estero, and a four-bedroom home and adjacent lot in Sebring all worth nearly $2.2 million. Another nearly $1.7 million were put on his business and personal bank accounts. Federal prosecutors plan to seize all assets belonging to Mr. Valdes.

How Can Whistleblowing Help Prevent Healthcare System Fraud?

Health care fraud affects everyone and causes tens of billions of dollars in losses each year. The US federal agencies encourage persons with non-public information regarding medical system violations to help expose the health care fraud.

At Khurana Law Firm, P.C., top-notch Medicare whistleblower lawyers support the decision to come forward to report abuse and fraud in the healthcare industry.

If you have become aware of a fraud or abuse scheme, you may be able to act as a whistleblower. The national whistleblower attorney Arvind Bob Khurana helps people to build a strong case that has helped whistleblowers receive a reward for aiding the government to fight fraud. Contact us today for a consultation. For a free, confidential evaluation call (888) 335-5107