Federal Authorities Seize $2 Million in Medicare Fraud Investigation Targeting Pasadena Clinic
Federal prosecutors have seized more than $2 million from Expert Wound Care in Pasadena amid a sweeping Medicare fraud probe, officials announced today. The clinic is suspected of submitting millions of dollars in fraudulent claims for skin graft procedures that patients never received.
The seizure follows an ongoing investigation led by the Department of Homeland Security Investigations and the office of U.S. Attorney Billie Essayli. Federal magistrates authorized the freeze after reviewing evidence suggesting widespread fraud over wound care billings on Medicare.
Millions in Questioned Medicare Payments Amid Rising Suspicion
According to an affidavit by Seth Tugg, a U.S. Secret Service agent working alongside CMS and Health and Human Services investigators, Expert Wound Care — operating also as St. Victoria Home Care — submitted Medicare claims nearing $46.6 million for skin substitute products and wound care services between July 2025 and March 2026. Medicare approved payouts totaled over $34 million.
Alarmingly, the affidavit revealed claims for a single patient surpassed $6.2 million, and the average billing per patient was roughly $299,639. Between September 2025 and April 2026, billings soared, jumping six-fold from under $5 million in July 2025 to approximately $33 million by December 2025.
Patients and Locations Raise Red Flags for Investigators
Investigators interviewed patients billed for these expensive treatments, uncovering disturbing discrepancies. One patient, identified as J.L., for whom Medicare was billed over $2 million, told authorities that a physician assistant named Tony treated him only three times without ever mentioning the clinic’s name. J.L.’s sister-in-law reported minimal wound care visits at home and noted treatments were often skipped due to severe infections.
Surveillance revealed the clinic’s purported office, listed as an Altadena Drive address, was actually locked and operating under the name Victoria Home Care, casting doubt on the legitimacy of the business location and operations.
Medicare Crisis in Wound Care Industry Prompts Nationwide Crackdown
This clinic’s case is part of a broader federal campaign targeting abuse in the Medicare-funded wound care and skin graft industry. Medicare spending on skin substitute products exploded in recent years, jumping from $256 million in 2019 to over $10 billion in 2024, driven by high reimbursements for biological and synthetic skin substitutes used in wound care.
CMS Fraud Defense Operations Center stopped nearly $185 million in improper payments in 2025 alone. To cut escalating costs and fraud risk, CMS implemented a flat national reimbursement rate earlier this year for skin substitute products, aiming to save billions annually.
Dr. Mehmet Oz, in an interview this year, confirmed the agency’s intensified efforts to root out fraud by targeting providers linked to excessive billing and fake treatments, especially in cases with astronomically high Medicare payouts like those seen in Pasadena.
What’s Next in the Medicare Fraud Probe?
No formal charges have been filed against Expert Wound Care or its principals at this stage. The seizure order affidavit indicates probable cause to believe the seized funds are traceable to health care fraud and conspiracy offenses. Investigations continue, and federal authorities are expanding their efforts to identify and penalize providers billing Medicare for treatments never rendered.
The aggressive federal action signals heightened scrutiny on the wound care sector nationwide, where fraudulent claims jeopardize Medicare resources and patient trust. Experts warn that more seizures and indictments could follow in the coming months as investigations deepen.
“The seizure from the Pasadena clinic represents a critical enforcement milestone in our efforts to stop Medicare fraud and protect taxpayer dollars,” said U.S. Attorney Billie Essayli.
For now, Medicare beneficiaries and taxpayers alike await further developments as authorities press forward with this complex and unfolding investigation.
