Federal prosecutors have seized more than $2 million from Expert Wound Care, a Pasadena-based clinic suspected of billing Medicare for millions in skin graft treatments that patients never received. The seizure marks a major step in an ongoing federal investigation targeting fraud within the lucrative wound care sector.
According to a federal magistrate-approved seizure warrant, Expert Wound Care, which operates under the name St. Victoria Home Care, reportedly submitted claims amounting to $46.6 million from September 2025 to April 2026 for skin substitute products and wound care services provided to 78 Medicare beneficiaries. Medicare approved payments totaling over $34 million on those claims, with some individual bills exceeding $6 million.
Surge in Billing Triggers Federal Action
The clinic’s Medicare billings skyrocketed from under $5 million in July 2025 to approximately $33 million in December—a six-fold increase that caught the attention of investigators. The First U.S. Attorney for Los Angeles, Billie Essayli, confirmed the clinic is the focus of an active probe coordinated with the Department of Homeland Security Investigations and the U.S. Secret Service.
Seth Tugg, a U.S. Secret Service agent involved in the case, stated in the affidavit that the seized funds are “traceable to the commission of a health care fraud offense” and tied to an alleged conspiracy to defraud Medicare.
Investigators report that claims submitted by Expert Wound Care frequently sought reimbursement for costly skin substitutes like AMCHOPLAST and Tri-Membrane Wrap that “did not reflect the benefits actually provided to beneficiaries,” according to the agent’s affidavit.
Patients Question Care, Raise Doubts
Federal investigators interviewed five patients billed by Expert Wound Care, uncovering disturbing inconsistencies. One patient, referred only as J.L., for whom the clinic billed more than $2 million, described minimal care and said he didn’t recognize the clinic’s practitioners. His sister-in-law noted that wound treatments were infrequent and limited because infections made wounds too severe.
Surveillance on Expert Wound Care’s Altadena Drive office, listed in Medicare claims, found it was actually the locked premises of Victoria Home Care, raising further suspicions about the authenticity of services.
Widespread Medicare Fraud in Wound Care Industry
The investigation is part of a nationwide effort by the Centers for Medicare & Medicaid Services (CMS) to clamp down on fraudulent billing in the wound care and skin graft sector. Medicare’s spending on skin substitute products skyrocketed from $256 million in 2019 to over $10 billion in 2024, triggering increased scrutiny.
Earlier this year, CMS introduced a flat national reimbursement rate to curb excessive spending, projected to save billions annually. In 2025 alone, CMS’ Fraud Defense Operations Center halted nearly $185 million in improper payments toward suspect providers.
In a recent interview, Dr. Mehmet Oz highlighted that a small number of providers have been responsible for massive overspending on skin substitutes, some billing for fake treatments.
What’s Next?
No charges have been filed against Expert Wound Care or its principals yet as the investigation continues. Federal authorities emphasize they are pursuing all leads to hold accountable those abusing Medicare funds.
For Delaware and U.S. readers, this case exemplifies broader risks of healthcare fraud affecting taxpayer dollars funding vital medical services nationwide.
Billie Essayli, First U.S. Attorney: “The seizure is part of an ongoing investigation targeting fraudulent claims that drain millions from Medicare, putting patient care and public funds at risk.”
Stay with The Delaware Herald for updates on this developing healthcare fraud probe and other breaking news impacting Americans across the country.
