Two Florida Men Sentenced for Healthcare Fraud & Money Laundering

moneylaundering.jpg.gif On April 2, 2008, U.S. District Court Judge Adalberto Jordan of the Southern District of Florida sentenced defendant Michael Labrada, 27, of Miami to a 97 month prison term and Miguel Castillo, 42, of Miami, to a 57 month prison term for their participation in a multi-million dollar health care fraud and money laundering scheme.
Labrada was convicted of conspiring with Angel Castillo, Jr. to commit health care fraud by serving as a straw owner of a medical equipment company known as JJ & D Medical Equipment, Inc. The company submitted more than $6.8 million dollars in bogus claims and received approximately $1.6 million in payments. In the second case, Labrada was convicted of money laundering charges in connection with a $2.3 million laundering scheme orchestrated by his co-defendant, Angel Castillo, Jr.
Miguel Castillo was also convicted of related health care fraud and money laundering conspiracy charges. In addition to serving as a straw owner of a medical equipment company, Miguel Castillo collected hundreds of thousands of dollars in fraud proceeds from check cashers at the direction of his cousin and co-conspirator, Angel Castillo, Jr.
Last month, Angel Castillo, Jr. was sentenced to a 235 month term in connection with his ownership of more than eight durable medical equipment companies in Miami during 2005 and 2006. The companies collectively submitted in excess of $48,000,000 in false claims by way of two Miami based medical billing companies. In reality, the companies never provided any Medicare patients with any type of equipment or service. Angel Castillo Jr. used a series of straw owners to conduct banking transactions and conceal his ownership of the companies.
After receiving more than $7,000,000 from the Medicare program, Angel Castillo, Jr. then laundered the proceeds of the scheme by using friends, family and other associates, including various bank employees, to cash hundreds of checks. In some cases, Castillo’s associates needed duffel bags to carry the cash out of local banks.
Co-conspirators, Giovanni Guerrero, Javier Roberto More, Angel Hernandez, Juan A. Zaragoza have all pled guilty to related health care fraud and money laundering offenses in the past months.