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Editor: Mike Bothwell
Profession: Qui Tam Attorney

Category: Settlements and Verdicts

Juan Carlos Castaneda, a Miami resident, pleaded guilty on August 29, 2008 to allegations of Medicare fraud in excess of $3 million. Castaneda also admitted to assisting Dilcia Marinez and others in a Medicare money laundering scheme through G&S Medical Center, Inc, a Miami HIV treatment clinic. One million eight hundred thousand dollars of the Medicare fraud funds were laundered through G&S by submitting false claims to Medicare and by writing checks drawn from G&S's accounts to various companies, most of which were fake companies. The checks would be made out in amounts under $10,000 so as not to alert authorities. Castaneda also admitted involvement in another money laundering scheme with Best Medical Inc. by submitting fraudulent invoices to Medicare for HIV infusion services that were never provided or were medically unnecessary.

Castaneda also pleaded guilty in July 2007 for his involvement in a scheme in which he paid cash kickbacks to 72 owners of durable medical equipment ("DME") companies in exchange for prescriptions for compounded aerosol medication. Medicare was billed for this drug and then Castaneda kicked back half of the proceeds to the DME owners. Castaneda received more than $4.5 million from Medicare and paid out $2,040,500 in bi- monthly kickbacks to DME company owners. For his involvement with these crimes, Castaneda is serving a sixty-three month prison sentence.

In a related matter, Brothers Carlos, Luis and Jose Benitez were indicted on June 11, 2008 for their participation in a $110 million false claims and money laundering scheme. At least eleven HIV clinics were involved in the schemes including G&S, which the brothers were owners of.