WEST PALM BEACH, Fla. — A Russian national pleaded guilty Friday to his role in a Medicare fraud scheme rooted in Palm Beach County, marking the first conviction in a case I first brought to you last year.
In federal court, 29-year-old Nika Machutadze, with the help of a translator, pleaded guilty to conspiracy to commit money laundering. He is one of the defendants linked to a fraudulent medical equipment company in Delray Beach called Sunshine Senior Solutions, and he admitted under oath to his involvement in a money laundering scheme totaling more than $7 million.
Machutadze could face up to 20 years in prison, plus fines, restitution and deportation.
Seniors first contacted me last year, sharing Medicare statements for medical equipment they didn't need — or receive — from Sunshine Senior Solutions.
While I tallied up hundreds of thousands of dollars in false claims from the statements I reviewed, that was a drop in the bucket, according to federal prosecutors.
Federal prosecutors say Sunshine Senior Solutions billed insurers for more than $3 billion, though only a fraction of that was paid out. Machutadze admitted to opening bank accounts for Sunshine Senior Solutions and a second similar business in Texas, and transferring some of the money paid by insurers overseas.
I reached out to some of the seniors to share the news of the guilty plea.
"Oh, that's terrific," said Laura Carmine, of Illinois. "Nice to know that justice can be done."
"I'm glad to hear that," said Mike Parrett, of Ohio.
I spoke with Machutadze's attorney, Tony Mirvis, after Friday's hearing.
"The government's evidence was overwhelming," Mirvis said.
Mirvis said his client thought he was just taking a job.
"What I think is important is he's like the tip of the spear," Mirvis said. "I hate to say it, but he's kind of like a victim because the people that got him to work— they're the ones that are making the millions of dollars, and he's making like literally nothing. He's getting in trouble for it."
Information filed in Friday's case mentions another defendant, Ibrahim Hilmi, and a second, unnamed co-conspirator. Hilmi, who is also tied to Sunshine Senior Solutions, is scheduled for trial in February.
"Everybody that's involved with this should get prosecuted, and they should get punished for what they did," Mirvis said.
Mirvis told me his client will not be cooperating with federal investigators on any other prosecutions.
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