Business Owner Arrested For Alleged Medical Fraud

SACRAMENTO (CBS13) -- A business owner accused of ripping off disabled customers was arrested in Flordia on Wednesday after a long investigation into alleged fraud.

A grand jury indicted 34-year-old Carlos B. Jerez on 16 counts of fraud for accepting money from customers for motorized wheelchairs and scooters.

Jerez, the owner of 1st Class Mobility, allegedly lied to customers about the status of the orders and didn't deliver the product.

Members of the Sacramento Valley Hi-Tech Task Force raided eight storage units belonging to the business in 2009, sifting through $400,000 of medical supplies that were never provided to the victims.

Federal authorities arrested Jerez in Florida on Wednesday and is being held there until conditions to his transfer to Sacramento are finalized.