Three Sentenced to Prison for Laundering Proceeds of $6.9 Million Medicare Fraud Scheme

Three South Florida men have been sentenced to federal prison for their roles in laundering more than $2.2 million in proceeds generated by a fraudulent durable medical equipment scheme that billed Medicare roughly $6.9 million for unnecessary orthotic braces. Marco Scamarone, 34, received a 70-month sentence, Jose Mendez, 34, received 78 months, and Renee Vazquez, 33, received 60 months. Each man pleaded guilty in December 2025 to conspiracy to commit money laundering.

According to court documents, the defendants owned and operated two fraudulent DME companies: Braces and Orthotics LLC and Stone Oak Durable Medical Equipment LLC. Between January 2022 and February 2023, these companies submitted millions in false claims to Medicare for braces that were medically unnecessary and ineligible for reimbursement. The scheme involved illegal kickbacks paid to an offshore marketing company in exchange for beneficiary referrals and fraudulent doctors orders. The three men then moved the illicit proceeds through a series of shell companies, ultimately laundering more than $2.2 million for their own benefit. In addition to prison time, Scamarone and Mendez were ordered to pay $2.2M in forfeiture and $3M in restitution, while Vazquez must forfeit $1.72M and pay $2.25M in restitution.

This criminal prosecution highlights how money laundering laws serve as a critical tool for federal authorities to dismantle healthcare fraud operations. Individuals who witness similar billing fraud or illegal payment arrangements are encouraged to consult with experienced legal counsel to understand their potential options under the False Claims Act.