OWNERS OF EDINBURG AMBULANCE COMPANIES FOUND GUILTY OF HEALTH CARE FRAUD

(McALLEN, Texas) - A federal jury has found former Hidalgo County Commissioner Guadalupe Garces Jr. and his wife, Araceli Garces, guilty of conspiracy to commit health care fraud and several substantive counts of health care fraud while operating a local ambulance company, United States Attorney Don DeGabrielle announced today. The Garces submitted more than $14 million in false and fraudulent claims to both the Medicare and Medicaid health care programs.

The Garces, who owned A-Stat Ambulance Inc., were formally indicted Dec. 6, 2006, alleging they conspired to defraud Medicaid and Medicare by means of false and fraudulent claims in connection with the ambulance transportation of beneficiaries to and from dialysis clinics. From May 2001 to June 2004, A-Stat Ambulance billed Medicare/Medicaid approximately $12 million and was paid approximately $4.5 million for transporting dialysis patients even though the Garces knew transportation by ambulance was not medically necessary.

In May 2007, a federal grand jury returned a superceding indictment alleging health care fraud by another ambulance company, A Care E.M.S. Inc. after Medicare and Medicaid suspended all payments to A-Stat Ambulance because of fraudulent billing, the defendants incorporated A-Care EMS Inc. under their 20-year-old son's name and had him apply and receive Medicare and Medicaid provider numbers. The investigation revealed the defendants continued to transport dialysis patients by ambulance when it was not medically necessary through A Care EMS Inc. from March 2005 through December 2006, billing Medicare/Medicaid approximately $3 million and being paid $1.6 million.

The investigation into A Care EMS Inc. lead to the indictment and guilty plea of Director of Operations Rodney Ramos who is now pending sentencing.

After the return of the jury's guilty verdict, the government asked the court for the defendants to be taken into custody; however, U.S. District Court Judge Ricardo H. Hinojosa allowed the couple to remain on their current bonds pending sentencing, scheduled for July 18, 2008, at 9:30 a.m. The defendants face a maximum punishment of up to 10 years in prison and a maximum $250,000 fine, plus restitution.

The investigation was conducted by the Department of Health and Human Services, FBI and the Texas Attorney General's Office. Assistant United States Attorneys Carolyn Ferko and Anibal J. Alaniz prosecuted the case.