U.S. Attorney’s Office, Southern District of California
SAN DIEGO – Fernando Valenzuela Ayub, a Chula Vista resident and business owner, pleaded guilty today in federal court to conspiracy charges related to laundering millions in health care fraud proceeds and paying unlawful kickbacks.
According to court documents, Valenzuela and co-conspirators operated multiple durable medical equipment (DME) companies that sold orthotics—such as back, wrist, and knee braces—to Medicare beneficiaries. Valenzuela admitted to paying $3.7 million in kickbacks to sham marketing companies that submitted fraudulent prescriptions for DME products.
After his DME companies were suspended from Medicare billing, Valenzuela conspired to transfer ownership to nominees while maintaining control and continuing to bill Medicare fraudulently. Over the course of the scheme, Valenzuela’s companies billed Medicare approximately $51 million and received about $20 million in payments. He then laundered at least $14 million of these proceeds.
As part of his guilty plea, Valenzuela agreed to forfeit $7,101,320. His sentencing is scheduled for August 15, 2025.
The case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
Defendant:
Fernando Valenzuela Ayub, 48, Chula Vista, CA
Case Number: 25cr2488-DMS
Charge:
Money Laundering Conspiracy (18 U.S.C. § 1956(h))
Maximum penalty: 20 years in prison and a $500,000 fine
Investigating Agencies:
- Federal Bureau of Investigation (FBI)
- U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG)
Note: Charges are allegations and defendants are presumed innocent until proven guilty.
