A South Florida woman, Evelyn Cruz, has been arrested for orchestrating an elaborate $11 million dental fraud scheme. Authorities allege that Cruz illegally operated dental offices under false pretenses, defrauding both patients and insurance companies for years.
Investigators revealed that Cruz billed unsuspecting patients for procedures that were never performed and exploited insurance companies by submitting false claims.
Illegal Operations Across South Florida
According to state investigators, Evelyn Cruz ran multiple dental practices across South Florida, including one in Boynton Beach. These offices operated under fraudulent circumstances, with Cruz utilizing the credentials of licensed dentists—sometimes without their knowledge—to establish legitimacy. Despite not being a licensed dentist herself, Cruz managed the operations, finances, and staff of these practices.
The Boynton Beach office became a focal point of the investigation after complaints from patients and insurance companies triggered a three-year probe. Investigators disclosed that the office, which is now under different management and has no connection to Cruz, was used as a hub for overcharging patients and billing insurers for procedures that never took place.
Misuse of a Licensed Dentist’s Credentials
In 2017, Cruz allegedly listed Dr. Ivan Pelton as the owner of her dental practices in official documents. However, Dr. Pelton later admitted that he did not own any of the corporations linked to the dental offices. He revealed that Cruz was the actual owner and admitted to being aware that she was using his dental license. Investigators found that Pelton received over $61,000 from the dental business’s accounts, further implicating him in the scheme.
Cruz hired legitimate dentists to treat patients but maintained control over the business operations. This allowed her to orchestrate the fraudulent activities, including submitting false insurance claims and manipulating financial records.
Financial Gains and Evidence of Fraud
The investigation uncovered significant financial irregularities tied to the fraudulent dental operations. Authorities seized $387,000 in cash hidden in trash bags at Cruz’s home, along with a $400,000 cashier’s check linked to the dental business’s accounts. Additionally, investigators found that Cruz had transferred funds from the business accounts into personal accounts, using the money to purchase a $1.8 million waterfront home.
Cruz’s husband, Ismael Cruz, played a key role in maintaining the scheme. Detectives reported that he managed cash deposits and oversaw building maintenance, aiding in the fraudulent activities.
Impact on Patients and Seniors
At least 80 patients were defrauded through this scheme, including 17 seniors aged 65 and older. Investigators provided examples of the fraudulent charges, including $18,000 in overcharges, $11,000 billed for procedures that were never performed, and instances of double billing for identical services.
The extent of the fraud and its impact on patients and insurance companies have been described as substantial. The complaints from defrauded patients and the discrepancies flagged by insurance companies were pivotal in unraveling the operation.
Ongoing Investigations
While the Boynton Beach office has since closed and is now operated by an unrelated entity, authorities revealed that two other dental office locations connected to Cruz remain operational. Records indicate that Dr. Pelton is still associated with several dental practices in Palm Beach County and the Treasure Coast.
Attempts to contact Dr. Pelton and the Cruz family at their home in Georgia have been unsuccessful. Authorities have urged individuals who believe they may have been defrauded by these practices to come forward and report their cases.
Conclusion
Evelyn Cruz’s arrest marks a significant step in addressing what investigators have described as a complex and extensive fraud operation. The case highlights the vulnerability of patients and the need for stringent oversight in the medical and dental industries to prevent similar schemes. Further investigations and legal proceedings are expected to shed more light on the full scope of this multimillion-dollar fraud.
