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Policy & oversight

Texas Couple Sentenced for Billing Medicare 14 Million Dollars for Wheelchair Repairs They Never Made

A federal judge sentenced a Harlingen husband and wife to a combined 16 years in prison after they admitted submitting fraudulent Medicare claims for power wheelchair parts and repairs that were never provided.

By the Goodsurance editorial teamOctober 26, 2026

A federal judge in Harlingen, Texas sentenced Jeremiah Yzaguirre and Maria Luisa Yzaguirre on October 23 for running a years-long scheme that billed Medicare more than 14 million dollars for power wheelchair parts and repairs the couple never delivered.

The Yzaguirres operated Southwest Medical Homepatient in Harlingen, a business enrolled in Medicare as a provider of durable medical equipment, including power wheelchair parts and repair services. From 2019 through 2023, they submitted claims for thousands of repairs tied to just 37 Medicare beneficiaries. Investigators found multiple instances where the couple billed Medicare for hundreds of separate parts or repairs on a single person's wheelchair.

A Texas couple billed Medicare 14 million dollars for wheelchair repairs they never made. Both are now headed to federal prison.

U.S. District Judge Fernando Rodriguez Jr. sentenced Jeremiah Yzaguirre to 110 months in federal prison and Maria Luisa Yzaguirre to 80 months. Both must serve three years of supervised release after their terms end. They were ordered jointly to pay more than 9.2 million dollars in restitution to Medicare and a 25,000 dollar fine.

Investigators found the couple used fraud proceeds to purchase a high-end sports car, cryptocurrency, electronics, and various collectibles. Both had pleaded guilty earlier this year.

The case was investigated by the FBI and the HHS Office of Inspector General, and prosecuted by the U.S. Attorney's Office for the Southern District of Texas.

Durable medical equipment billing has been a sustained focus of Medicare fraud enforcement. This case illustrates how a small pool of enrolled beneficiaries can underpin millions in false claims when billing is tied to equipment and services rather than face-to-face patient encounters.

In plain words

A couple from Harlingen, Texas ran a medical supply business. They billed Medicare for millions of dollars worth of wheelchair repairs. But they never did the repairs. They used just 37 Medicare patients to make millions of dollars in fake claims over four years. A judge sentenced the husband to more than nine years in federal prison. The wife got more than six and a half years. They also have to pay back more than 9.2 million dollars to Medicare.

Source: DOJ Southern District of Texas
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