Three Florida residents were sentenced after pleading guilty to a scheme that billed Medicare for medically unnecessary orthotic braces, laundered proceeds through shell companies, and resulted in more than $2.2 million in forfeiture and restitution orders.
A federal court handed down prison terms this week to Marco Scamarone, 34, of Tamarac, Florida; Jose Mendez, 34, of Coral Springs, Florida; and Renee Vazquez, 33, of Tamarac, Florida, for their roles in a durable medical equipment fraud and money laundering conspiracy. Scamarone received 70 months in prison, Mendez 78 months, and Vazquez 60 months. The defendants had already admitted their roles and pleaded guilty in December 2025 to conspiracy to commit money laundering.
The scheme centered on two fraudulent DME companies, Braces and Orthotics LLC and Stone Oak Durable Medical Equipment LLC, which submitted roughly $6.9 million in claims to Medicare between January 2022 and February 2023. Many of those claims were for orthotic braces that were medically unnecessary and therefore ineligible for Medicare reimbursement. Investigators found the filings were propped up by fake doctor orders and a referral network paid with kickbacks.
Prosecutors say the conspiracy paid illegal kickbacks and bribes to an offshore marketing company that supplied beneficiary referrals and fraudulent medical documentation. The defendants then laundered their proceeds through a series of shell companies controlled by them or their associates. That effort was designed to obscure the money’s origin and make it available for personal use.
At sentencing, financial penalties were steep and specific: Scamarone and Mendez were ordered to forfeit $2,217,840.35 and to pay $3,016,324.20 in restitution. Vazquez was ordered to forfeit $1,723,773.18 and to pay $2,249,392.09 in restitution. Those amounts reflect the government’s accounting of illicit proceeds and victim losses tied to the fraudulent health care claims.
Federal investigators from HHS-OIG, the FBI, and DOL-OIG led the probe into the scheme, with other Justice Department components assisting in the case. The announcement named Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division and U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida among officials involved in the matter. Acting Deputy Inspector General for Investigations Scott Lampert, Special Agent in Charge Brett Skiles for the FBI Miami Office, and Inspector General Anthony P. D’Esposito for the DOL-OIG were also listed in the government statement.
Trial Attorney Claire Horrell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alexander Pogozelski for the Southern District of Florida handled the prosecution. The case underscores the Criminal Division’s broader emphasis on health care fraud, where coordinated federal action targets networks that bilk federal health programs. Prosecutors say holding organizers and enablers accountable is essential to protect Medicare and taxpayers.
The Justice Department has recently shifted resources and spotlight toward fraud enforcement, including the creation of a dedicated Fraud Division. Department officials framed that work as supporting President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs. That political line connects broader administrative priorities to on-the-ground prosecutions.
The Fraud Section also runs the Health Care Fraud Strike Force Program, which has pursued thousands of defendants nationwide. Since March 2007, strike force efforts have charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. Those figures are used to underscore the scale of the problem and the need for sustained investigative effort.
Federal prosecutors and investigators say the DME fraud pattern—medically unnecessary braces combined with referral kickbacks—remains a common vector for abuse. The modular nature of DME billing, the reliance on documentation from outside sellers, and the multi-jurisdictional movement of money make these schemes attractive to organized fraudsters. Officials stress that tracing money through shell companies is a core tool in dismantling such operations.
Beyond prison time and restitution, forfeiture orders aim to strip conspirators of the gains from their crimes and to deter similar behavior. Prosecutors emphasize that financial remedies are paired with criminal sentences to provide both punishment and a path to make victims whole where possible. The government’s message is clear: fraud that targets Medicare will be investigated and punished.
For communities and providers, the case serves as a reminder to maintain strict compliance standards and to scrutinize referral relationships. Law enforcement says corporate structures that obscure ownership or funnel payments offshore are red flags. The hope among officials is that high-profile convictions will discourage others from entering similar fraudulent schemes.
The outcomes in this case reflect a coordinated federal approach that mixes criminal prosecution, asset forfeiture, and interagency investigation. Names, numbers, and sentences now sit on the public record as a warning to those who would exploit federal health programs for profit. The court’s penalties are meant to restore losses and to reinforce that Medicare fraud carries serious consequences.
