TALLAHASSEE - Attorney General Bill McCollum today announced the arrests of Raymond Barrena, the owner of Perdomo Medical Equipment and Supplies, and Julio Ruiz, a licensed orthotics fitter, on charges of Grand Theft related to an apparent Medicaid fraud scheme involving expensive knee braces.

Barrena, 42, of Miami, owned and operated Perdomo Medical Equipment and Supplies and Julio Ruiz, 42, also of Miami, was employed by Barrena as an orthotics fitter. The investigation began when the Attorney General’s Medicaid Fraud Control Unit was advised by the state Agency for Health Care Administration’s Program Integrity Unit of suspicious billings by Perdomo Medical Equipment and Supplies from February 2003 through January 2004.

Investigators from the Attorney General’s Medicaid Fraud Control Unit in conjunction with the U.S. Department of Health and Human Services Office of the Inspector General launched an extensive investigation. During the investigation, information was developed indicating that Barrena billed the Medicaid program for more than $600,000 in orthotic devices, and Ruiz fabricated records to make it appear as though those devices had been delivered to and fitted on Medicaid recipients. The orthotics, which included knee braces, were never provided to the recipients and the investigation further showed the recipients were not in need of any orthotic devices.

Barrena was turned over to Miami-Dade police this morning for transport and booking into the Dade County Jail. Ruiz turned himself in at the Miami Medicaid Fraud Control Unit this morning. He will also be booked into the Dade County Jail. If convicted, each defendant faces up to 30 years in prison, and fines of up to $10,000.