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The president Donald Trump has released the biggest Medicare fraudster in U.S. history.
Lawrence Duran, a businessman from Miami sentenced to 50 years in prison for leading a multimillion-dollar fraud scheme against the public healthcare system, was granted commutation of his sentence on May 28.
The presidential decision is part of a series of more than two dozen clemencies granted that day.
Among all of them, Duran's case stands out due to its scale, impact, and the severity of the original sentence. Until then, Duran was serving the longest sentence ever imposed for Medicare fraud: half a century behind bars.
A monumental fraud scheme
Lawrence Duran was a co-owner of American Therapeutic Corporation (ATC), a chain of mental health clinics based in Miami with a presence in Orlando and Southern Florida.
Through that company, between 2002 and 2010, Duran and his partner and associate, Marianella Valera, orchestrated a scheme to defraud the federal Medicare system out of more than 205 million dollars, of which they effectively collected about 87 million.
The company was presenting false claims for mental health therapies that were never provided, or that were administered to patients unfit to receive them.
Among the victims were elderly individuals with Alzheimer's, dementia, or other serious conditions who could not even actively participate in group sessions, the treatment that was billed to the government.
According to federal prosecutors, the defendants filed more than 866,000 fraudulent claims and "organized 'medical record parties' where they forged clinical files to justify fictitious therapies."
The payments received were funneled through shell companies, such as MedLink Professional Management Group and American Sleep Institute, to disguise the illicit origin of the money.
A well-crafted network of corruption
The fraud was not carried out alone.
Duran and Valera had the support of a wide network of over 30 individuals, including doctors, psychiatrists, counselors, patient recruiters, and administrative staff.
Bribes were paid to assisted living centers and residences to send them patients, who sometimes also received a portion of the money.
"In some cases, patients received a portion of those bribes," stated the Department of Justice.
The idea was simple: inflate patient lists with vulnerable individuals, justify unnecessary treatments, and bill Medicare for millions of dollars.
A key figure was Judith Negrón, vice president of MedLink, who was found guilty of 24 counts of fraud, conspiracy, money laundering, and bribery.
She was sentenced to 35 years in prison in 2011. Trump also commuted her sentence, in her case in 2020, during his first term.
Luxuries, manipulation, and political power
With the money from the fraud, Duran and Valera lived surrounded by luxury.
They lived in a condominium overlooking Miami Bay and drove a Maserati. However, their ambition was not limited to amassing wealth.
In 2006, Duran founded and directed the National Association of Behavioral Health (NABH), a front organization that he used to pressure Congress to maintain or increase funding for partial hospitalization programs: precisely the same ones that his company was fraudulently exploiting.
"In reality, NABH was an organization that provided Durán with a seemingly legitimate vehicle to pressure Congress in order to allocate more money, through Medicare, to Durán and his co-conspirators for their fraudulent claims," wrote Department of Justice attorney Jennifer Saulino in a court filing.
Additionally, Duran instructed the NABH staff on "how to win appeals for Medicare claim denials, based on ATC's experience," allowing him to extend his methods to other centers.
Exemplary sentence, controversial pardon
In May 2011, Duran and Valera pleaded guilty.
In September of that same year, Duran was sentenced to 50 years in prison and ordered to pay more than 87 million dollars in restitution.
It was the harshest penalty ever issued for Medicare fraud, far exceeding the previous 30-year record.
Valera, for her part, received a sentence of 35 years, which was reduced to 15 years, and was released in 2020.
Margarita Acevedo, marketing director of ATC, received a sentence of 91 months. Other employees and accomplices were also sentenced.
Federal authorities celebrated the rulings.
"I hope this conveys a message to those who seek to defraud the government… they will end up in prison for a long time if they get caught," wrote Saulino. And for a decade, that was the prevailing message.
So far.
A mercy that reopens wounds
President Trump's decision to commute Lawrence Duran's sentence has been met with astonishment and concern.
The magnitude of the fraud, the exploitation of vulnerable patients, and the professional structure of the criminal scheme have turned it into an emblematic case. Releasing its mastermind raises serious questions about the criteria for granting clemency.
For many, Duran's release not only erases a landmark sentence but also sends a dangerous message: that even the most serious crimes can be forgiven with the right political favor.
Frequently Asked Questions about the Lawrence Duran Pardon and Medicare Fraud
Why is Trump’s pardon of Lawrence Duran controversial?
The pardon of Lawrence Duran is controversial due to the scale of the fraud committed, being the largest Medicare scammer in the history of the United States. Duran was sentenced to 50 years in prison for leading a fraud scheme that defrauded the Medicare system of over 205 million dollars. His release raises serious concerns about the criteria for granting clemency, as his crime had a significant and exemplary impact on healthcare fraud.
How did the Medicare fraud perpetrated by Lawrence Duran operate?
Lawrence Duran, along with his partner Marianella Valera, led a fraudulent scheme through the American Therapeutic Corporation (ATC), submitting false claims for mental health therapies that were never provided or given to ineligible patients. The fraud amounted to over 205 million dollars, of which they effectively collected around 87 million, exploiting vulnerable patients such as elderly individuals with Alzheimer's and dementia.
What impact does Medicare fraud have on the U.S. healthcare system?
Medicare fraud has a significant impact on the U.S. healthcare system, resulting in million-dollar losses and affecting trust in medical services. This type of fraud not only drains valuable resources intended for the healthcare of the elderly and disabled but also increases costs for taxpayers and fosters distrust in public health programs.
How does Lawrence Duran's case compare to other Medicare fraud cases in Florida?
Florida has been a hub for Medicare fraud, with numerous cases involving millions of dollars in scams. However, the case of Lawrence Duran is one of the largest and most sophisticated, being the most significant Medicare fraud recorded in the U.S. Other cases, such as those of Julián López and Edelberto Borges Morales, also stand out, but with smaller-scale frauds, though still significant in terms of economic and social impact.
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