New Arrest in $240 Million Medicare Fraud Involving Cuba

Tuesday, May 13, 2014
In The Miami Herald:

New arrest in case of money laundering to Cuba

A case that started out alleging $70 million in Medicare fraud now puts the figure at nearly $240 million.

A Miami man has been arrested in an unprecedented money-laundering case that alleges some part of as much as $238 million gained from Medicare fraud was secretly pumped into the Cuban banking system.

Eduardo Perez de Morales, 26, was arrested by FBI agents Monday on one charge of conspiring with his fugitive brother, Jorge Emilio Perez de Morales, who owned a remittance company, Caribbean Transfers.

The company is suspected of bankrolling a Florida check-cashing business that prosecutors say cashed checks for Medicare fraud offenders and transferred the dirty dollars through Canada to Cuba.

Jorge Emilio Perez, who owns a seaside home in Havana, is wanted by the FBI and was last reported to be living in Cuba. Charged in 2012, he also could be in the Dominican Republic, Mexico or Spain, authorities said.

The revised indictment now charging his brother alleges that as much as $238 million in stolen Medicare proceeds were laundered in the scheme, but it does not say how much ended up in Cuba’s national bank. The indictment further alleges that the Perez brothers laundered some of those dollars through Caribbean Transfers’ bank accounts in Canada and other locations.