200 Indicted in $2.75B Fraud Schemes: Unveiling the Massive Scandal
TL/DR –
Federal health care fraud schemes across the U.S., involving nearly 200 people, have led to over $2.7 billion in intended losses. Attorney General Merrick Garland announced charges against 193 people, including 76 medical professionals across 32 federal districts, with the defendants accused of millions of dollars in fraudulent claims, wire fraud, health care fraud, and money laundering. Distinct cases include a $900 million scam that targeted elderly and terminally ill patients in Arizona, a telehealth company illegally distributing Adderall, an over $90 million fraud scheme involving adulterated and misbranded HIV drugs in Florida, and a fraudulent sober living homes scheme targeting Native Americans.
Nearly 200 Individuals Charged in Massive US Health Care Fraud
The Justice Department recently charged almost 200 people in numerous health care fraud schemes across the U.S., contributing to over $2.7 billion in intended losses. Attorney General Merrick Garland declared that this group, including 76 medical professionals, were charged across 32 federal districts in a two-week sweep, leading to the seizure of over $231 million in assets.
Garland emphasized that regardless of the person’s profession, anyone profiting from the unlawful distribution of controlled substances would be held accountable. The accused are charged with fraudulent claims, wire fraud, health care fraud, and money laundering.
In Arizona, five cases were filed in federal court, including a $900 million scam targeting elderly and terminally ill patients. The founding CEO and clinical president of a major telehealth company were also charged for illegally distributing Adderall and other medicines.
Unlawful Medical Practices
In Florida, corporate executives committed an over $90 million fraud scheme by distributing adulterated and misbranded HIV drugs. Other scams included targeting Native Americans with fraudulent sober living homes and illegally prescribing opioids. The Centers for Medicare and Medicaid Services also took administrative actions against 127 medical providers for alleged health care fraud involvement.
Charges in Arizona implicated four individuals submitting $900 million in false claims for amniotic wound grafts used on elderly Medicare patients. Alexandra Gehrke and Jeffrey King targeted victims through several wound care companies, causing unnecessary and extremely expensive graft applications. These actions resulted in more than $1 million per patient in unnecessary grafts, contributing to over $600 million in 16 months.
Additional Fraudulent Schemes
In Florida, three owners of a pharmaceutical company are accused of distributing adulterated and misbranded HIV drugs. They allegedly bought over $90 million of discounted prescription drugs from black-market suppliers and resold the drugs to pharmacies nationwide with falsified documentation.
Four people were charged in Arizona and Florida for filing false claims for patients seeking drug or alcohol addiction treatment, resulting in more than $146 million in false claims. Rita Anagho was indicted for paying kickbacks for patient referrals from vulnerable populations, including homeless individuals and Native Americans.
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