Twelve-Year Sentence for Medicaid Diaper Scam

Faegre Drinker Biddle & Reath LLP

Maria Paz Garza was the King Midas of incontinence supplies: she turned diapers into dollars—over two and a half million of them, according to the government’s indictment.

She did it through a scheme that charged Texas Medicaid for diapers and other incontinence supplies that were never provided, or never authorized by physicians, or were more expensive than necessary. Sometimes when supplies were actually delivered, Maria bought them back so that she could sell them to Medicaid all over again. The scam also involved forging physicians’ names, paying illegal kickbacks, and buying patient information such as Medicaid ID numbers for use in submitting fraudulent claims.

Unfortunately for Maria, she got caught, indicted, and convicted. And on June 13 she was sentenced to ten years in prison for the fraud crimes and another two years for aggravated identity theft, to be followed by three years of supervised release. She was also ordered to pay $1.8 million in restitution.

There is no truth to the report that when she completes restitution, her file will be stamped with the palindrome DIAPER REPAID.

The case is United States v. Paz Garza, No. 7:16-cr-00877 (S.D. Tex., sentenced June 13, 2017).

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Faegre Drinker Biddle & Reath LLP | Attorney Advertising

Written by:

Faegre Drinker Biddle & Reath LLP

Faegre Drinker Biddle & Reath LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.