MIAMI--A federal jury has convicted 12 defendants in connection with a $17 million DME billing and money-laundering scheme involving custom-made orthotics such as knee, shoulder and hip braces, along with other equipment including oxygen tanks and hospital beds.

The indictment alleged that Ruben Martinez and four family members--daughter and son-in-law Adriana and Daniel Ramos, son Daniel and mother Edith--owned and controlled the DME companies involved in the scheme. To conceal their involvement, the conspirators allegedly recruited other individuals to serve as "straw" owners of the companies, including Five Star Medical Equipment & Supplies, Extended Health Care Services, Hafar Medical Equipment and others located in Miami-Dade County. The defendants allegedly paid kickbacks to patient recruiters who would, in turn, bribe Medicare beneficiaries to service as fictitious patients.

Between 2000 and 2002, the companies received approximately $17 million in Medicare payments, all of which were reimbursements for false claims, according to the U.S. District Attorney's Office for the Southern District of Florida. All the companies closed in December 2002.

The case was investigated by the FBI, HHS and the IRS.