Golden State Today

California Attorney General Rob Bonta announced the sentencing of Dr. Magaly Mercedes Velasquez, a Southern California dentist, along with two employees from her dental practice, for a fraudulent billing scheme that defrauded the state Medi-Cal program of nearly $800,000.

Dr. Velasquez and her spouse, Maria Jose Talavera, who served as an office manager at the practice, were sentenced by the Riverside County Superior Court to 364 days in jail and ordered to pay restitution amounting to $770,238 to Medi-Cal. Jessica Monique Perez, the billing manager at U-First Dental practice, will be placed on probation for two years. The prosecution was conducted by the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA).

Attorney General Bonta stated, “When dentists like Velasquez defraud Medi-Cal to line their own pockets, they jeopardize the program’s ability to provide necessary healthcare services to our most vulnerable patients.” He further added that today's sentencing holds those involved accountable and sends a strong message about the commitment of the California Department of Justice to safeguard public programs.

Velasquez owned U-First Dental practice where she executed the fraudulent billing scheme from January 1, 2017 to December 31, 2019. The practice was contracted with Borrego Community Health Foundation—a Federally Qualified Health Center participating in Medi-Cal—receiving reimbursement for each day billed rather than individual services provided. U-First Dental fraudulently split services over multiple days on claims for reimbursement to maximize returns from Medi-Cal.

The DMFEA is tasked with protecting Californians by investigating and prosecuting those who defraud the Medi-Cal program or commit elder abuse. These actions are facilitated through coordination among governmental agencies and assistance from whistleblowers reporting incidences of abuse or fraud.

The DMFEA receives 75% of its funding from HHS-OIG under a grant totaling $87,038,485 for federal fiscal year 2024; the remaining 25% is funded by the State of California. The federal fiscal year runs from October 1, 2023 through September 30, 2024.

A copy of the sentencing minute order will be available in the coming days.