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Financial Crimes
06/29/2016

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2 New Mexico residents federally indicted for health care fraud

ALBUQUERQUE, New Mexico —Two New Mexico residents, who were charged with health care fraud, were arrested Tuesday.

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated this case.

Cory Werito, 32, of Farmington, and Rosita Toledo, 46, of Kirtland, are charged in a 10-count indictment filed June 15. Werito and Toledo were arrested June 28, and made their initial appearances in federal court in Farmington. They remain in custody pending their arraignment and detention hearings, which are set for June 30 in Albuquerque.

The indictment includes nine health care fraud charges against Werito and Toledo, and one aggravated currency structuring charge against Werito. The health care fraud charges stem from the defendants’ role in creating and operating a medical transportation company, CW Transport, a Farmington company that provided non-emergency medical transportation to Arizona Medicaid recipients.  Between 2011 and 2013, CW Transport allegedly collected more than $1.9 million in Medicaid reimbursements from an Arizona Medicaid agency by submitting more than 18,000 claims, the vast majority of which were wholly or substantially false and fraudulent.

The aggravated currency structuring charge alleges that Werito conducted financial transactions involving the proceeds of the health care fraud in a manner that avoided the filing of Currency Transaction Reports (CTRs).  Financial institutions are required to file CTRs on transactions involving more than $10,000 on any business day.  CTRs are used by law enforcement authorities to uncover a broad range of illegal activities, including money laundering.  According to the indictment, from August 2011 to July 2013, Werito conducted at least 200 cash withdrawals, each for several thousands of dollars but less than $10,000 and totaling at least $800,000, to avoid the filing of CTRs.

The indictment includes forfeiture provisions seeking an order requiring Werito and Toledo to forfeit to the United States at least $1,959,405, which are the proceeds allegedly derived from the health care fraud.

If convicted, Werito and Toledo face up to 10 years of imprisonment on each of the 10 counts of the indictment.  Charges in indictments are merely accusations; defendants are presumed innocent unless found guilty in a court of law.

The following agencies assisted with this investigation:  FBI, U.S. Marshals Service, San Juan (New Mexico) County Sheriff’s Office, the Arizona Health Care Cost Containment System, and New Mexico Office of the Attorney General.

Assistant U.S. Attorney Jeremy Peña, District of New Mexico, is prosecuting this case.

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Last Reviewed/Updated: 07/05/2016