Attorney General assists US Department of Justice with return of funds for victims of healthcare fraud
His Majesty’s Attorney General has recently assisted the United States Department of Justice by sharing more than $667,000 in confiscated funds related to the conviction of Gustavo Geraldes for a large-scale fraud committed in the United States during the Covid pandemic.
Mr Geraldes engaged in a kickback scheme in which telemedicine providers authorised medically unnecessary genetic testing orders for tests to be performed at laboratories part-owned by him. The scheme exploited temporary amendments to telehealth restrictions enacted during the Covid pandemic, which were intended to make it easier for Medicare recipients to receive medical care at home. Medicare is a federal healthcare program which provides free or below-cost health care benefits to many Americans including the elderly, blind, and disabled.
In April 2022 he was convicted of conspiracy to offer and pay healthcare kickbacks. A Forfeiture Money Judgment was imposed in the amount of US$2,645,891.55, representing the gross amount of criminal proceeds traceable to his criminal conduct. His assets were seized, forfeited and applied towards that sum, but a shortfall remained.
The US authorities later learned that Mr Geraldes had transferred money to a Jersey bank account. He consented to the forfeiture of part of those funds to meet the shortfall, resulting in a US Forfeiture Order being made.
The US authorities sought the Attorney General’s assistance in obtaining a saisie judiciaire over the money in Jersey and the registration and enforcement of the US Order. On 28 July 2025 the Royal Court duly granted the applications, the Viscount took possession of the specified funds, and they were paid into the Criminal Offences Confiscation Fund.
In line with Jersey’s permanent asset sharing agreement with the US, the Law Officers’ Department took its costs of recovering the funds and $667,000 was then transferred to the US authorities, which will be used to offset the losses incurred by Medicare.
His Majesty’s Attorney General Matthew Jowitt KC said:
“The Mutual Legal Assistance Team in the Law Officers’ Department has worked closely with the US Department of Justice in this case involving a large-scale healthcare fraud. The case is a further example of the highly effective working relationship between the two jurisdictions in fulfilling the purpose of the confiscation regime”.
15 September 2026