Judge orders restitution for Medicaid fraud

A judge in a federal fraud case has ordered an Edmond couple to pay $268,796 in restitution to the state’s Medicaid program.

Lawrence Vasquez, 62, and his wife, Eunja L. Vasquez, 56, operated Mercy Diabetic Supply Inc. in Oklahoma City.

They were accused in a 115-count indictment of submitting false Medicaid claims for reimbursement to the Oklahoma Health Care Authority for insulin pump supplies. Some claims involved people who didn’t have diabetes.

Lawrence Vasquez pleaded guilty in June to one felony fraud count. He was sentenced Thursday to 20 months in federal prison.

Eunja Vasquez pleaded guilty in September to a misdemeanor, embezzlement of public money. She was sentenced Thursday to probation for five years. She also must spend 15 days in jail on weekends starting Feb. 1.

They were prosecuted in Oklahoma City federal court after an investigation by the state attorney general’s Medicaid fraud control unit.

“The state’s Medicaid program is designed to help men, women and children in need,” Oklahoma Attorney General Mike Hunter said Friday. “Through strong statefederal partnerships, like the one with the U.S. Attorney’s Office, we will continue to crack down on those exploiting the system and hold them accountable.”

U.S. District Judge Stephen Friot chose the punishments.

The judge was told in sentencing memos that the scheme started because a new regulation prohibited the company from selling certain equipment.

“Feeling pressure to provide (for) his family and keep MDS financially viable, Larry began to create/obtain fraudulent medical documentation for insulin pumps and insulin pump-related equipment,” the judge was told.

“The court will see neither Mr. nor Mrs. Vasquez again,” the judge was told. “This is a once-ina-lifetime event.”