Local health care company shuts down amid fraud investigation

Posted at 3:52 PM, May 01, 2018
and last updated 2018-05-01 16:52:45-04

Employees of a local home health care company no longer have jobs.

Merida Health Care Group closed its Corona Drive location last week after a slew of legal troubles linked to a fraud and money laundering investigation. It’s unclear how many jobs are affected.

The legal problems began in January when a federal grand jury indicted three company officials and a South Texas mayor on charges of fraud and money laundering. And then in March, a related company called BRM Home Health Services filed for Chapter 11 bankruptcy.

A ruling in the case on Monday prompted BRM Home Health Services to close its San Antonio offices, according to a report by news station WOAI. An employee at the San Antonio office told a reporter with WOAI the company still owed her a paycheck for a month of work.

In Corpus Christi, Merida Health Care Group failed to pay rent for March and April, said the building manager of 4444 Corona Drive. That prompted the landlord to change the locks.

Rodney Mesquias, who owned Merida Health Care Group, is accused of running a health care scheme that involved more than $150 million dollars in Medicare billings for hospice and home health services, according to a news release by the Department of Justice about the indictment.

The company had locations throughout the state.