CRIME

FBI arrests El Paso business owner, nephew accused in hospice health care fraud scheme

Daniel Borunda
El Paso Times

An El Paso business owner and her nephew are accused in a health care fraud scheme that allegedly signed up clients for hospice care who didn't need it.

FBI agents arrested Zenia Chavez, 45, and her nephew, Raul Alejandro Fuentes, 23, on Friday on federal health care fraud and conspiracy charges, the U.S. Attorney's Office for the Western District of Texas said.

Chavez is the owner and Fuentes is an employee of Nursemind Home Health Inc., which provides hospice and senior home health care services, federal officials said.

On Monday, Chavez and Fuentes remained held without bond at the El Paso County Jail in Downtown. 

"The defendants sought out people in boarding homes and senior living facilities for enrollment in a Nursemind hospice program although they did not need hospice care or have a terminal illness," the U.S. Attorney's Office said in a statement.

"The defendants then created false and fraudulent medical records for the individuals, forged health personnel signatures, and submitted fraudulent claims to Medicare."

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Chavez also is accused of offering kickbacks for client referrals to her hospice and senior home health care company, federal prosecutors said.

Nursemind is listed as operating out of Chavez's home in the 3100 block of Royal Jewel Street in far East El Paso, according to online records.

Chavez and Fuentes were arrested on 14 counts of health care fraud and one count of conspiracy to commit health care fraud, authorities said.

In connection with the alleged kickback scheme, Chavez also faces one count of conspiracy and 11 counts of illegal remunerations regarding a federal health care program.

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If convicted, Chavez and Fuentes face a maximum of 10 years in prison on each of the health care fraud charges. Chavez also faces 10 years on each of the remuneration charges, authorities said.

The case was investigated by the FBI and the U.S. Department of Health and Human Services Office of Inspector General.

Daniel Borunda may be reached at 915-546-6102; dborunda@elpasotimes.com; @BorundaDaniel on Twitter.