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Clifton Medical Supply Store Owner Admits To $100,000 Medicaid Fraud Scheme

Alfredo Valdes Jr. of Clifton.
Alfredo Valdes Jr. of Clifton. Photo Credit: NJ Attorney General

CLIFTON, N.J. — A Clifton man who owns a West New York medical equipment supply store has pleaded guilty to fraudulently billing the Medicaid program more than $100,000 for medical supplies never provided to patients, Attorney General Christopher S. Porrino and the Office of the Insurance Fraud Prosecutor (OIFP) announced.

Alfredo Valdes, Jr., who owns T-N-T medical supplies, pleaded guilty to second-degree charges of health care claims fraud and theft by deception in a hearing before Superior Court Judge Mitzy Galis-Menendez in Hudson County.

Under the terms of the plea agreement, the State will recommend that 42-year-old Valdes be sentenced to four years in state prison. Valdes will also pay $101,000 in restitution to Horizon New Jersey Health, and sign a consent order agreeing to lifetime disbarment from participation as a provider in the New Jersey Medicaid program.

“Stealing from a program that provides financial assistance to those who cannot afford health insurance or health care services is not only a crime, it’s a disgrace,” Porrino said.

“This guilty plea ensures that the defendant will be held accountable for his actions and will never again be in a position to divert resources from those who truly need it.”

“Every dollar lost to Medicaid fraud is one less dollar available to help some of the most vulnerable citizens of our state,” Acting Insurance Fraud Prosecutor Christopher Iu added.

“Our Medicaid Fraud Control Unit will continue to aggressively investigate and punish those exploit the Medicaid system for their personal enrichment.”

In pleading guilty, Valdes admitted that between January 2008 and March 2016 he fraudulently submitted claims totaling more than $100,000 to Horizon NJ Health, a provider of Medicaid services in the state.

The claims falsely stated that Valdes had distributed durable medical equipment – including compression stockings, diapers and other items - to patients who, in fact, had died prior to the dates of the purported distributions.

Valdes is scheduled to be sentenced in January 2018.

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