Paramount Woman Faces Sentencing in $24 Million Healthcare Fraud Scheme

LOS ANGELES (CNS) – A Paramount woman faces sentencing Thursday for her role in a healthcare fraud scheme that billed Medicare over $24 million for medically unnecessary power wheelchairs and the repair of medical equipment.

Cynthia Marquez, 47, pleaded guilty in December 2019 to two federal counts of making false statements affecting a healthcare program.

According to the indictment, Tamara Motley operated Action Medical Equipment and Supplies, which was based in Hawthorne until 2014, and Kaja Medical Equipment & Supply, which operated in Ventura until late 2016.

Marquez worked as an office manager at both Action and Kaja, and the third co-defendant, Juan Murillo, 45, of Montebello, worked at both companies as a repair technician, according to the U.S. Attorney’s Office.

Motley allegedly orchestrated a scheme in which corrupt physicians prescribed medically unnecessary durable medical equipment, such as power wheelchairs, and oversaw the submission of bogus bills to Medicare, according to prosecutors.

In January 2011, when Medicare changed the reimbursement rules for the wheelchairs, Action largely stopped Medicare billing for the chairs and, instead, started billing Medicare for repairs, prosecutors say.

Action and Kaja submitted bills for repair or replacement services that were not medically necessary, were not needed to make the wheelchairs serviceable and often, simply were not performed. The majority of bills submitted in the case involve fraudulent repair work, according to the indictment filed in Los Angeles federal court.

Motley, 53, of Redondo Beach — also known as Tamara Ogembe — is expected to go to trial in October. Murillo pleaded guilty to conspiracy to launder money and was sentenced in May to three years’ probation and restitution of $2.5 million.

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