Sharp debridement, which requires cutting into wounds with a scalpel, was among the procedures an unlicensed pharmaceutical sales rep performed on patients. Photo by Elen Sher/Unsplash
U.S. District Judge Jennifer L. Thurston sentenced Felipe Ruiz, 52, of Fresno, and Jose Gabriel Aguirre, 53, of Clovis, to 63 months in prison for conspiracy to commit health care fraud, U.S. Attorney Eric Grant announced.
Judge Thurston also ordered forfeiture of nine properties owned by Aguirre and Ruiz, as well as a $2.6 million personal forfeiture money judgement against Aguirre and a $12.1 million personal forfeiture money judgement against Ruiz.
According to court documents, Ruiz was a podiatrist and the sole owner of West Coast Podiatry Inc. (WCP), a podiatric medical practice with locations in Fresno, Madera and Stanislaus Counties. Aguirre was a pharmaceutical sales representative who sold skin grafts to Ruiz and WCP. Aguirre was not licensed to practice medicine.
Between June 2021 and January 2024, Ruiz purchased skin grafts from Aguirre and permitted Aguirre to apply skin grafts and perform other medical procedures on patients suffering from severe wounds, including foot amputations. Application of the skin grafts required sharp debridement, which means using a scalpel to scrape the wound until it bleeds.
Some patients believed Aguirre was a physician, referring to him as “Dr. Gabe.” Aguirre would perform medical procedures alone without supervision from a trained physician.
“We trust licensed medical professionals to safeguard their patients and not hand them over to unqualified individuals,” said U.S. Attorney Grant. “This podiatrist put profit over patient safety by allowing a salesman to perform medical procedures on vulnerable Medicare beneficiaries. Today’s outcome underscores our commitment to holding providers accountable when they abuse that trust and bill federal health care programs for services that violate the most basic standards of care.”
Ruiz and Aguirre submitted fraudulent claims to Medicare, Medicaid, and Medi-Cal that falsely represented that Ruiz and other physicians had performed the medical procedures, such as applying skin grafts to patients, when Aguirre had actually rendered the services.
In one example, WCP submitted $150,000 in claims to Medicare in 2023, claiming a physician performed the procedures, when in fact the physician was out of the country on vacation. In another example, Aguirre cut into patients with recently amputated feet with a scalpel and applied skin grafts without a physician’s supervision. Ruiz knew about Aguirre’s conduct and dismissed staff’s concerns about Aguirre.
Staff and third-party auditors raised concerns about Ruiz and Aguirre’s billing practices, according to a news release. The two ignored those warnings and continued to bill Medicare and Medicaid for services performed by Aguirre.
As a result, Ruiz submitted approximately $3.2 million in false claims to Medicare, Medicaid and Medi-Cal between 2021 and 2024.
“Fueled by greed, Dr. Ruiz’s scheme exposed his patients to serious risk and undermined the integrity of federal health care programs. As today’s sentences demonstrate, HHS‑OIG and our law enforcement partners will continue to hold those who put profits above patients accountable for their actions,” said Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG).
The U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Brittany M. Gunter and Cody S. Chapple prosecuted the case.