Two El Paso hospital executives surrender to FBI amid billing scheme allegations

KVIA ABC-7
EL PASO, Texas (KVIA) -- Federal prosecutors say that two El Paso hospital executives surrendered to FBI last week. Jose Huerta, 58, a CEO of two Long-Term Acute Care hospitals in El Paso, and Israel Navarro, 47, owner of one of the hospitals, are accused of an alleged pass-through healthcare billing scheme.
Court documents accuse Huerta and Navarro of allegedly conspiring to submit false urine drug test insurance claims to Blue Cross Blue Shield.
"Huerta’s and Navarro’s hospitals allegedly submitted false insurance claims to Blue Cross Blue Shield, indicating in those claims that the individuals tested were patients in their hospitals when they were not," federal prosecutors explained. "The claims further indicated that UDT samples were taken from the patients and forwarded to a lab in the Dallas area. None of this was true. Over a six-month period, Huerta and Navarro submitted $16 million dollars in claims for the laboratory testing of UDTs. The actual loss to Blue Cross Blue Shield attributed to Huerta’s and Navarro’s alleged fraud scheme totals more than $12 million."
Prosecutors say Navarro, who lives in Puerto Rico and the Dallas area, voluntarily surrendered to the FBI in El Paso and made his initial court appearance on July 22. A federal magistrate then released him on a $150,000 bond. Huerta also surrendered and made his first court appearance on July 24. He was then released on a $50,000 bond.
"They are each charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit mail fraud," prosecutors explained. "If convicted, they face up to 20 years in prison and a $250,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors."