HAGATNA, Guam (AP) — Two employees of a Guam ambulance company have admitted guilt in a conspiracy to defraud the federal government of nearly $11 million. ADVERTISING HAGATNA, Guam (AP) — Two employees of a Guam ambulance company have admitted
HAGATNA, Guam (AP) — Two employees of a Guam ambulance company have admitted guilt in a conspiracy to defraud the federal government of nearly $11 million.
Trevor Cruz and Jared Jay Ada pleaded guilty last week in federal court to conspiracy to commit health care fraud. Their plea agreements call for a maximum prison sentence of 10 years, The Pacific Daily News reported (https://bit.ly/1RdAYdo).
Both men are accused of participating in a scheme to fraudulently bill Medicare and TriCare for services rendered by Guam Medical Transport from March 2010 to March 2014.
Court documents say Ada is the company’s general manager and Cruz is the billing manager.
Guam Medical Transport is authorized by Medicare and TriCare to provide ambulance service, but service is only covered when a patient has a condition that makes ambulance transportation “medically necessary and reasonable.”
Prosecutors allege Ada and Cruz committed fraud in order to bill and collect for services that would have otherwise been ineligible for coverage.
The defendants’ plea agreements include a provision that allows the court to hand down a sentence less than the maximum if they provided “substantial assistance” to investigators. Federal prosecutors will later determine whether the assistance was sufficient in the case for a reduced sentence.
Assistant U.S. Attorney Mohammad Khatib said an investigation into the case remains ongoing.
Cruz and Ada remain out of custody and are scheduled to be back in court on May 5.
