Texas Man Sentenced To 20 Years For Hospice Fraud Scheme

A Texas corporate executive has been sentenced by a federal jury to 20 years in prison for running a scheme in which people with long-term illnesses were falsely told they would die soon, and then enrolled them in hospice programs.

In the scheme, thousands of patients with diseases like Alzheimer's and other types of dementia were told they had just six months to live. Going on palliative care meant that they were no longer able to have medical insurance cover curative medical services, the Justice Department said in a press release Thursday.

Rodney Mesquias, 48, and co-conspirator Henry McInnis, 48, were convicted last year of one count each of conspiracy to commit health care fraud, conspiracy to commit money laundering and conspiracy to obstruct justice, as well as six counts of health care fraud. Mesquias was also convicted on one count of conspiracy to pay and receive kickbacks. He must pay $120 million in restitution.

McInnis and two others who pleaded guilty are awaiting sentences.

The details of the scheme are grim.

Mesquias owned Merida Health Care Group, which had dozens of locations around Texas, and McInnis was CEO. Dr. Francisco Peña, a physician who was at the time the mayor of Rio Bravo, Texas, was a medical director for the company.