Medical Clinic Owner Accused of $38 Million Health Care Fraud Scheme

According to allegations in the federal grand jury indictment, Armando Valdes, age 63, collected nearly $38 million in proceeds from fraudulent health care claims to United Healthcare and Blue Cross Blue Shield. A conviction on each of the 10 counts of health care fraud could result in a sentence of 100 years in prison – 10 years for each charge.

The Department of Justice (DOJ) reports Valdes billed insurance companies for medically unnecessary infusions of Infliximab — an expensive prescription used to treat autoimmune diseases – through Gasiel Medical Services, a medical clinic he owned and operated, from February 2015 through July 2021.

Valdes allegedly used the scheme's proceeds to purchase nearly $5 million worth of real estate properties in Miami, Florida, according to court and property records. The DOJ also alleges Valdes purchased a white 2018 Cadillac Escalade and a white 2016 Tesla Model S with the funds and deposited roughly $1.7 million into his personal and business accounts. Federal prosecutors aim to seize all of Valdes' assets.

Federal agents arrested Valdes on December 10, with his arraignment and bond hearing scheduled for December 15. According to the Miami federal docket, he does not have a defense attorney listed.  

While most of the healthcare fraud cases in South Florida involve false claims made to Medicare, an increasing number involve false claims made to private insurers like Blue Cross and United, and thus garnering the designation of the nation's healthcare fraud capital.