Date: 02-04-2021

Case Style:

Case Number: 1:18-cr-00008

Judge: Rolando Olvera

Court: United States District Court for the Southern District of Texas (Cameron County)

Plaintiff's Attorney: United States District Attorney’s Office

Defendant's Attorney:

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Description: Brownsville, Texas conspiracy to commit health care fraud criminal defense lawyer represented Defendant, Henry McInnis, age 50, of Harlingen, Texas, who was charged with conspiracy to commit health care fraud, conspiracy to commit money laundering, obstruction of justice, as well as six counts of health care fraud.

McInnis was convicted by a federal jury in Brownsville, Texas, in November 2019 of one count each of conspiracy to commit health care fraud, conspiracy to commit money laundering, obstruction of justice, as well as six counts of health care fraud.

McInnis’s co-conspirator, Rodney Mesquias, 50, the owner of the hospice and home health entities, was also convicted following the November 2019 trial. He was sentenced to 240 months in prison in December 2020. Two other co-conspirators have pleaded guilty and are awaiting sentencing.

Defendant falsely telling thousands of patients with long-term incurable diseases they had less than six months to live in order to enroll the patients in hospice programs for which they were otherwise unqualified, thereby increasing revenue to the company.

“McInnis, as CEO of the company, directly oversaw a reprehensible criminal scheme that involved the submission of over $150 million in fraudulent bills, the falsification of patients’ medical records, and the payment of unlawful kickbacks,” said Acting Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “McInnis preyed upon some of the most vulnerable members of our society, including many who suffered from diminished mental capacity and who were falsely and cruelly told by co-conspirators that they had only months to live. Today’s significant sentence demonstrates the department’s continued commitment to pursuing individuals, at all levels of corporate management, who engage in criminal schemes that prioritize profits over patient care.”

“Families seek to give comfort and support to their ailing loved ones when all other medical options are gone,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “It is unconscionable and evil to prey upon the most vulnerable in our community to commit fraud against government-funded programs. The FBI is committed to protecting our communities from those who may not have the strength to protect themselves.”

“McInnis and his co-conspirator’s reprehensible and deceitful actions to defraud Medicare weren’t without harm: vulnerable beneficiaries were unnecessarily enrolled in hospice care, preventing them from accessing needed curative care,” said Special Agent in Charge Miranda L. Bennett, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region. “With our law enforcement partners, we will continue to investigate those who put ill-gotten profits above the well-being of patients in our health care system.”

From 2009 to 2018, McInnis, Mesquias and others orchestrated a scheme that involved the submission of over $150 million in false and fraudulent claims for hospice and other health care services. McInnis served as the top corporate officer and administrator and oversaw the day-to-day operations of the Merida Group, a large health care company that operated dozens of locations throughout Texas.

McInnis had no medical training and worked previously as an electrician. However, he acted as the de facto director of nursing for the Merida Group. Witnesses at trial testified McInnis directed employees to admit unqualified patients to hospice and home health, keep unqualified patients on services for long periods of time and fired and reprimanded employees who refused to participate in the scheme.

McInnis also oversaw and enforced a company-wide practice of falsifying medical records to conceal the scheme. Multiple witnesses testified McInnis ordered employees to alter medical records to make it appear patients were terminally ill. In reality, some were employed or even participating in sporting events. The jury also heard that McInnis explained the purpose of the falsified records was to allow the Merida Group to pass insurance company audits.

As CEO, McInnis also adopted a policy that paid illegal kickbacks. They directed bribes to physicians under the guise of medical director fees to certify unqualified patients for hospice and home health. In some cases, they improperly offered payoffs to marketers in exchange for recruitment of patients who could be placed on extremely expensive hospice services.

HHS-OIG, FBI and Texas Health and Human Services Commission conducted the investigation. Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.

Outcome: Minute Entry for proceedings held before Judge Rolando Olvera: Appearances: Jacob Foster and Andrew Rogers Swartz AUSAs, Edmund K Cyganiewicz CJA.(Court Reporter: Sheila Perales) (Interpreter: not needed) SENTENCING held on 2/3/2021 as to Henry McInnis. Dft sworn in. Dft objections to Govt's objections and application of 2 points for abuse of position of trust. Court overrule Dft's objections. Court adopts PSR subject to rulings. Court grants Variance and runs BOP sentences and SRTs concurrent. Court SENTENCED Dft Henry McInnis (2), Counts 1s, 2s, 4s, 5s, 6s and 7s to 120 months BOP. 3 years SRT. Counts 8s and 11s to 180 months BOP. 3 years SRT. All concurrent with each other. Court waives Fine. Special Assessment $100.00 imposed on each Count for a total of $900.00.Dft must report to probation 72 hours after release; Dft will not commit any offenses; dft must comply with standard conditions; dft shall not use nor possess any illegal controlled substance; dft shall not possess a firearm. Dft must comply with DNA requirement. Dft must not communicate, or otherwise interact, with the co-defendants and/or co-conspirators in this case. Dft must provide the probation officer with access to any requested financial information and authorize the release of any financial information. The probation office may share financial information with the U.S. Attorney's Office. Dft must not incur new credit charges or open additional lines of credit without the approval of the probation officer. Court waives Restitution. Court signed order granting money judgment. Court recommends BOP place Dft in a facility near Bastrop, TX. Court recommends BOP allow Dft to participate in RDAP. Court grants CTS credit for time served while in custody. Court grants Defense Counsel motion to withdraw. Deft remanded to USM, filed. (3:48-4:17 pm) (sespinoza, 1) (Entered: 02/03/2021)

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