Prison Sentences for Florida Medicare Fraud Scheme Exceeding $2.2 Million

Three individuals from Florida have been sentenced to prison for their involvement in a Medicare fraud and money laundering scheme totaling over $2.2 million. They operated two sham durable medical equipment providers, Braces and Orthotics LLC in Virginia and Stone Oak Durable Medical Equipment LLC in Florida. From January 2022 to February 2023, they submitted fraudulent claims to Medicare amounting to approximately $6.9 million for unnecessary orthotic braces, using illicit payments to secure beneficiary referrals and falsified medical orders. The fraud proceeds were funneled through various shell companies, amounting to more than $2.2 million laundered.

In December 2025, the defendants, Scamarone, Mendez, and Vazquez, pleaded guilty to conspiracy to commit money laundering. Scamarone and Mendez were ordered to forfeit over $2.2 million and pay restitution exceeding $3 million, while Vazquez faced forfeiture of over $1.7 million and nearly $2.3 million in restitution. The investigation was a joint effort among the U.S. Department of Justice, HHS-OIG, FBI, and DOL-OIG, highlighting the significance of regulatory compliance enforcement in the healthcare sector.

The Department of Justice's Fraud Division plays a critical role in exposing and prosecuting fraud against government programs. This endeavor is part of the government’s broader strategy to combat fraud and abuse, with the Health Care Fraud Strike Force Program leading these efforts since its inception in March 2007. The program has charged over 6,200 defendants responsible for more than $45 billion in fraudulent claims affecting federal health initiatives and private insurers. Underwriting risk management and accountability for fraudulent healthcare practices remain a top priority for agencies like the Centers for Medicare & Medicaid Services and HHS-OIG.