Owners Of Mercy Diabetic Supply Charged With Medicaid Fraud


Oklahoma City, Oklahoma – A federal grand jury has charged Eunja Vasquez 55, and Lawrene Vasquez, 61, of Edmond, Oklahoma, with Medicaid fraud, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma, and Mike Hunter, Oklahoma Attorney General.

According to the 115-count indictment, the Vasquezes used their own Oklahoma City company, Mercy Diabetic Supply, Inc., to defraud the Oklahoma Health Care Authority.  Mercy Diabetic Supply is not affiliated with Mercy Health System.  The indictment alleges that the Vasquezes submitted Medicaid claims for insulin pump supplies in the names of 29 Medicaid beneficiaries who did not, in fact, use insulin pumps in the treatment of their diabetes and whose physicians had not prescribed the use of insulin pumps for them.  According to the indictment, some had not been diagnosed with diabetes.  It is further alleged that Eunja Vasquez falsified medical forms and forged physician signatures as part of the scheme.

Attorney General Hunter’s Medicaid Fraud Control Unit investigated the case and brought the charges to the U.S. Attorney for the Western District of Oklahoma.  The Attorney General said his office is dedicated to working with federal prosecutors to pursue individuals and companies committing fraud in the state.

“I commend the attorneys and investigators in the Medicaid Fraud Control Unit, who worked tirelessly on this case,” Attorney General Hunter said.  “Our office remains committed to fighting fraud, waste, and abuse of the state’s Medicaid program that helps vulnerable Oklahomans.  I appreciate U.S. Attorney Mark Yancey and his team for taking this case.”

U.S. Attorney Yancey said his office will continue its partnership with state agencies and state law enforcement to prevent fraud and corruption.

If convicted, the Vasquezes could each be imprisoned for a maximum of ten years on each count, to be followed by three years of supervised release.  They could also be fined up to $250,000 on each count and would be subject to mandatory restitution.

A copy of the press release is available at justice.gov.

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