Carlos and Jorge de Céspedes, once owners of Pharmed, one of the largest Hispanic businesses in the United States, pleaded guilty Friday morning to one count of conspiracy to commit wire fraud and one count of evading personal income taxes.

In a written proffer attached to the plea deal, Jorge de Céspedes admitted that he made cash payments to an employee of Kendall Regional Medical Center starting in the 1980s and continuing through the 1990s. In exchange, the employee, Sylvia Oramas, diverted supplies from the hospital's warehouse to Pharmed.

Also in the late 1990s, Jorge de Céspedes admitted that Oramas began generating phony purchase orders for Pharmed medical supplies that the hospital paid for but were never delivered.

At the hearing Friday, the voice of Carlos de Céspedes, 58, cracked he as told U.S. District Judge Patricia Seitz, ``I'm extremely sorry and ashamed for the pain I've caused my family and children and the community as a whole.''

The judge passed paper tissue to de Céspedes' lawyer, and Carlos used it to dab at his eyes.

His brother, Jorge de Céspedes, 55, told the judge he, too, was ``very ashamed, sorry.''

With their Pharmed medical distribution business in bankruptcy court, the brothers were charged in July with healthcare-related wire fraud and income tax evasion in two cases that started from separate investigations.

The brothers were accused of cheating Kendall Regional Medical Center out of several million dollars in a complex kickback scheme and evading about $8 million in federal income taxes.

Three former Kendall Regional employees have already pleaded guilty in the fraud case. Court documents reveal that the employees said Pharmed had been cheating the hospital on and off since the 1980s.

The brothers face up to 20 years on the fraud count and five years on the tax charge, but prosecutors have agreed to let them serve their sentences concurrently, and they will probably be sentenced to far less than the maximum.

Sentencing is scheduled to start Dec. 4. Lawyers for the brothers said they would probably fill the courtroom with witnesses speaking on the de Céspedes' behalf.

In questioning their ability to understand the meaning of a guilty plea, Seitz asked the brothers what medications they were taking and if the medications were clouding their judgment.

Both brothers said that, in addition to blood pressure and other common prescription drugs, they were taking Lexapro, which is generally prescribed for depression and anxiety.

''I guess it helps keep me stable,'' Jorge said.

''I think it has something to do with this case,'' Carlos said.

Both said the medication did not impair their judgment in deciding to plead guilty.

During the hearing, Assistant U.S. Attorney Ryan K. Stumphauzer told the judge that an unindicted co-conspirator, Erika Urquiza, a Pharmed assistant vice president, had also agreed to plead guilty.

She is also scheduled to be sentenced in December, along with the three ex-hospital employees: Victor Garcia, Joanna Delfel and Sylvia Oramas.

Speaking of the brothers, U.S. Attorney R. Alexander Acosta said in a prepared statement in July: ``These individuals had it all -- success, money and the admiration of their community. But they tarnished their good names and reputations because they wanted even more than they already had, and they wanted it the quick and easy way. As this case shows, the quick and easy way usually leads to jail.''

The plea deal was the latest stage in a stunning collapse for two brothers with personal incomes of more than $20 million each in 2003.

In January, Carlos de Céspedes wrote The Miami Herald in an e-mail: ``My brother and I are tremendously proud of what we have been able to accomplish in Miami. We've built a number of successful businesses that have employed many hundreds of people, paid a lot of taxes and supported a great many important community causes.''

In a press release, Acosta commended the investigative efforts of the Federal Bureau of Investigation and the Internal Revenue Service. The health care fraud case is being prosecuted by Ryan Stumphauzer. The tax evasion case is being prosecuted by Tom Mulvihill and Steve Schlessinger.

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