Federal Authorities Seize $2 Million From Pasadena Wound Care Clinic Amid Massive Medicare Fraud Investigation
Federal prosecutors have seized over $2 million from Expert Wound Care, a Pasadena-based clinic suspected of defrauding Medicare out of millions by billing for skin graft procedures that patients never received. The seizure, announced today by U.S. Attorney Billie Essayli, forms part of an ongoing probe targeting fraudulent billing practices in the lucrative wound care industry.
The clinic reportedly received more than $34 million in federal Medicare payouts linked to suspicious claims for advanced skin substitutes and wound treatments between July 2025 and March 2026. One patient’s claims alone exceeded $6 million, with the average billing per patient running close to $300,000. These figures were revealed in affidavits submitted to a federal court in Los Angeles and highlight an alarming surge in Medicare reimbursements to the clinic—from less than $5 million in July 2025 to over $33 million by year-end.
Growing Medicare Fraud in Wound Care Industry Under Scrutiny
The investigation, conducted in partnership with Department of Homeland Security Investigations and the U.S. Secret Service, centers on claims submitted for skin substitutes such as AMCHOPLAST and Tri-Membrane Wrap, which Medicare covers for wound closure and healing. According to the affidavit from U.S. Secret Service Agent Seth Tugg, these claims “do not reflect the benefits actually provided” to patients.
“Based on national averages, Expert Wound Care electronically submitted claims seeking reimbursements for skin substitutes and skin grafts that were not provided,” the affidavit reads.
Investigators interviewed several beneficiaries and uncovered disturbing inconsistencies. For example, one patient, identified as J.L., was billed over $2 million, yet reported minimal treatment from the clinic’s staff and did not recognize the practitioners linked to the company. Surveillance also found the clinic’s listed Altadena drive location was locked and appeared nonoperational during critical periods.
Massive Medicare Spending on Skin Substitutes Alarms Federal Officials
Medicare spending on skin substitutes exploded from $256 million in 2019 to over $10 billion in 2026, drawing sharp criticism and federal scrutiny. Dr. Mehmet Oz, speaking earlier this year, acknowledged this fraud crisis, noting that some providers have exploited Medicare’s reimbursement system by billing tens of dollars per square centimeter, sometimes for fake treatments.
In response, the Centers for Medicare & Medicaid Services (CMS) has implemented a flat national rate starting this January to curb runaway spending, projecting billions in savings and cracking down on fraudulent claims. The case against Expert Wound Care is part of this broader CMS crackdown, which also stopped nearly $185 million in improper payments in 2026 alone from suspect providers nationwide.
Investigation Ongoing as No Charges Yet Filed
While no criminal charges have yet been filed against Expert Wound Care or its principals, the federal seizure indicates substantial evidence linking their $2 million in assets to Medicare fraud. U.S. Attorney Essayli signaled further action is forthcoming as the investigation deepens. The stolen funds and mounting evidence mark a stark warning to providers exploiting federal health programs at the taxpayer’s expense.
This unfolding case underscores an urgent nationwide effort to protect Medicare from fraudulent wound care billing schemes that drain billions and undermine patient trust.
The Nevada Voice will continue monitoring this developing story as federal authorities pursue justice and safeguard public funds.
