Marlow Hernandez, former CEO of Cano Health, is on trial over serious fraud accusations tied to $72 million in losses and Cano Health’s bankruptcy.
October 20, 2025
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Hernandez on Trial Over Fraud Allegations
Marlow Hernandez, the former CEO of Miami-based healthcare company Cano Health, is at the center of a high-profile trial this week. He faces claims that he orchestrated a $72 million fraud that allegedly led to the company’s bankruptcy.
Background on Cano Health
Cano Health, founded in 2009, served seniors with primary care services and went public in 2021 in a $4.4 billion SPAC merger (MedCity News).
By early 2024, Cano filed for Chapter 11 bankruptcy after accumulating $1.3 billion in debt versus assets and liabilities up to $10 billion.
Fraud Claims and Legal Action
Plaintiffs allege Hernandez misrepresented Cano’s financial condition and regulatory compliance to secure business deals. He is accused of failing to disclose key internal approvals, resulting in major partner losses and destabilizing the company (MedCity News).
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Source:
Reuters
Impact of Bankruptcy and Allegations
Business Fallout
Cano Health’s collapse is seen as a case of poor leadership, aggressive expansion, and unchecked growth (PCG Software).
The bankruptcy restructuring triggered clinic closures and layoffs, impacting both employees and the 310,000 members who relied on its care.
Alleged Misconduct Details
Hernandez and Cano Health are accused of defaulting on $5.5 million in invoices, leaving partners with “stranded” investments and resulting in layoffs and closures at affiliated clinics.
Specific claims from Onsite Dental and CD Support include misleading statements on finances and compliance to induce a 20-year service deal, with guarantees of hundreds of millions in payments that were not fulfilled.
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Source:
Bloomberg
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