Texas Couple Sentenced to Prison for $14 Million Medicare Wheelchair Scam

The operators of a durable medical equipment company have been sentenced for defrauding Medicare.

Jeremiah Yzaguirre, 47, and his wife, Maria Luisa Yzaguirre, 47, both of Harlingen, pleaded guilty on April 22, 2025.

U.S. District Judge Fernando Rodriguez Jr. imposed a 110-month term of imprisonment for Jeremiah Yzaguirre, while Maria Luisa Yzaguirre received 80 months. Both must also serve three years of supervised release following their sentences. They were both further ordered to pay $9,248,976 in restitution to Medicare and a $25,000 fine. 

The Yzaguirres operated a business called Southwest Medical Homepatient in Harlingen. The business was enrolled in the Medicare program as a provider of DME and services. Among other things, the business purported to provide parts and repairs for power wheelchairs. 

Between 2019 and 2023, the Yzaguirres caused Medicare to be billed approximately $14 million for power wheelchairs, parts, and repairs for only 37 individual Medicare beneficiaries. There were multiple instances in which they billed Medicare for hundreds of parts and repairs for a single beneficiary’s wheelchair. 

Harlingen couple sentenced in multimillion-dollar Medicare fraud scheme https://t.co/HhZHYwjfwb https://t.co/cTXD2ihzka

— US Attorney SDTX (@USAO_SDTX) October 23, 2026

As part of their pleas, both admitted they were paid millions of dollars for parts and repairs that were never actually performed or provided. They also admitted that, for one specific Medicare beneficiary, they billed approximately $736,072 for parts and repairs by falsely claiming to have replaced certain expensive parts hundreds of times. 

As part of their pleas, the couple admitted they received millions of dollars for parts and repairs that were never performed or provided. They both acknowledged billing Medicare approximately $736,072 for parts and repairs for one specific beneficiary, falsely claiming to have replaced expensive parts hundreds of times. 

Jeremiah and Maria Yzaguirre, both 47 years old, of Harlingen, have been sentenced for defrauding Medicare. Jeremiah received 110 months imprisonment, while Maria received an 80-month sentence. Each will also serve three years of supervised release and both have been ordered to pay $9,248,976 in restitution to Medicare and a $25,000 fine. Read more here: https://t.co/YJBchcysnd

— FBI San Antonio (@FBISanAntonio) October 23, 2026

The investigation revealed the Yzaguirres used proceeds of the fraud to purchase cryptocurrency, a vehicle, electronics, miscellaneous collectibles, and purses.

Both will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future. 

The FBI, Department of Health and Human Services — Office of Inspector General, Texas Health and Human Services — OIG, Texas Attorney General — Medicaid Fraud Control Unit, and Texas Department of Insurance conducted the investigation.

Assistant U.S. Attorneys Andrew Swartz and Ana Cano prosecuted the case. 

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division which is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste and abuse within federal benefit programs.

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