A Hialeah businessman stands accused of laundering nearly $2 million in a Medicare fraud scheme totaling $41 million, with allegations of sending some of these funds to Cuba, according to federal authorities. Edelberto Borges Morales, aged 62, was apprehended by federal agents while attempting to board a flight to Varadero on Thursday, as reported by Local 10, citing the indictment document.
Instead of reaching the island nation, Borges was escorted to the Federal Detention Center in downtown Miami, where he remains held without bond and awaiting a court date, as indicated by court records.
The $41 Million Fraud Operation
The criminal complaint filed in a Miami federal court alleges that Borges laundered $1.9 million derived from a scam involving three South Florida medical equipment companies: One-Star Professional Services Inc., Med-Union Medical Center Inc., and Vida Med Center LLC. These entities submitted fraudulent claims totaling $41 million to Medicare for durable medical equipment (DME) "that was never provided," according to the indictment.
Investigations revealed that the supposed recipients of the equipment had no knowledge of the company allegedly supplying it, nor any connection to the prescribing doctor listed in the billing records, as stated in Medicare reports. "Every interviewed beneficiary indicated they neither needed nor received the prescribed durable medical equipment," the complaint emphasizes.
A physician listed as a prescriber for One Star testified that he "had never heard of One Star" and did not practice at the Medley address registered by the company since 2014. He also denied prescribing medical equipment to patients linked to the Medicare claims.
The fraudulent activities extended further: Over 95% of billing involved "procedure codes related to skin grafts and dermal substitute applications," yet none of the beneficiaries required or had injuries justifying such treatments. One beneficiary even remarked to agents, “I was prescribed so many skin grafts, they must think I’m a whale.”
Borges' Involvement in the Scheme
Authorities accuse Borges of using three Hialeah-registered companies to launder money from the fraudulent billings. RX Exclusive and GBT Max were established on October 16, 2024, with A&MTX Group launched five days later. All operated from the same office building at 1275 W. 47th Place, Hialeah.
"All DME companies issued checks to Borges' businesses," noted investigators. Additionally, after reviewing Borges' travel history, authorities found he made approximately 35 trips between Miami and Cuba over two years, raising suspicions of funds being transferred to the island.
The complaint notes Borges had photos of blank checks from One Star on his phone, contradicting his claim of being unaware he was the listed owner of the companies and that he "never cashed any of the approximately $2 million in checks." In his defense, Borges argued he kept the photos “because he suspected that what the individual asked him to do might one day get him into trouble,” according to the complaint.
Potential Cuban Link and Maximum Penalty Risk
Agents also highlighted Borges' claim of residing in the United States, while spending “significant time in Cuba due to the need to assist a family member.” Now, Borges faces a federal charge of conspiracy to commit money laundering, which could result in a prison sentence of up to 20 years.
The case is ongoing in Miami's federal court, where authorities continue to unravel the web of shell companies and the potential transfer of funds to the island.
FAQs on the Hialeah Medicare Fraud Case
What were the companies involved in the Medicare fraud?
The companies involved were One-Star Professional Services Inc., Med-Union Medical Center Inc., and Vida Med Center LLC.
How much money was allegedly laundered by Borges?
Edelberto Borges Morales is accused of laundering approximately $1.9 million.
What is the potential sentence for Borges?
Borges could face a maximum sentence of up to 20 years in prison if convicted of conspiracy to commit money laundering.