Federal prosecutors have seized more than $2 million from a Pasadena wound care clinic suspected of defrauding Medicare out of tens of millions of dollars, officials announced Tuesday. Expert Wound Care, which operates as St. Victoria Home Care, faces allegations of submitting fraudulent claims for skin grafts patients never received, marking a significant development in an ongoing nationwide crackdown on wound care industry scams.
The seizure stems from an affidavit filed Monday and authorized by a federal magistrate in Los Angeles, according to Billie Essayli, First U.S. Attorney. The Pasadena-based clinic reportedly received over $34 million in Medicare payments for wound care and skin substitute services, with charges involving one patient exceeding $6 million. Investigators say the scale and rapid increase in billings raised red flags.
Massive Fraud Uncovered in Medicare Claims
A U.S. Secret Service agent’s affidavit details how Expert Wound Care’s Medicare claims exploded from roughly $5 million last July to approximately $33 million in December alone. In total, claims submitted between September and April amounted to nearly $47 million for skin substitutes and wound care services purportedly delivered to 78 Medicare beneficiaries.
Medicare reimburses providers at premium rates for skin substitutes — complex biological or synthetic coverings designed to treat wounds. Spending on these products soared nationwide from $256 million in 2019 to over $10 billion in 2026, prompting the Centers for Medicare & Medicaid Services (CMS) to toughen scrutiny.
“There is probable cause to believe that Expert Wound Care submitted claims for treatments that were never actually provided,”
according to the affidavit by U.S. Secret Service Agent Seth Tugg.
Patients and Surveillance Contradict Billing Records
Despite billing millions for treatments, investigators found conflicting evidence on the ground. The clinic’s Altadena Drive office, listed on Medicare forms, was actually the locked Victoria Home Care location during surveillance. Interviews with several patients revealed little to no wound care consistent with the high billing amount.
One patient, identified as J.L., was billed over $2 million. He recounted only infrequent visits by a physician assistant from a different company and no one from Expert Wound Care. His sister-in-law confirmed limited home nursing visits but no regular skin graft treatments. She noted none occurred in December, when the clinic claimed expensive services were rendered.
Crackdown on Wound Care Fraud Gains Momentum
The seizure is part of a broader investigation by federal agencies including DHS Investigations and CMS’s Fraud Defense Operations Center. Earlier this year, CMS implemented a flat national reimbursement rate for skin substitutes to curb abuse and projects billions in annual savings.
Dr. Mehmet Oz, who spoke publicly about the issue this year, highlighted a small group of providers fueling excessive billing through unnecessary or fake treatments. Medicare’s efforts in 2026 already stopped nearly $185 million in improper payments for skin substitutes.
Though no charges have yet been filed against Expert Wound Care or its principals, the case underscores growing regulatory resolve to target healthcare schemes exploiting Medicare, one of the nation’s largest insurance programs.
What’s Next?
Investigators will continue to dissect the clinic’s billing practices and patient care records. The $2 million seizure aims to prevent further dissipation of funds while the federal probe advances. Medicare beneficiaries across the U.S. benefit from tighter enforcement that seeks to preserve taxpayer dollars and protect patient care integrity.
The unfolding clinic fraud case serves as a sharp warning to healthcare providers nationwide about the serious consequences of abusing federal healthcare programs. The Alabama Report will monitor developments on this and related Medicare fraud investigations that may impact healthcare providers and taxpayers across the country.
