Luxury lifestyle ends in prison for couple who defrauded Medicare

The Brief

  • A Scottsdale couple was sentenced to federal prison for orchestrating a $1.2 billion Medicare fraud scheme that involved billing for medically unnecessary wound grafts on elderly and terminally ill patients.
  • The couple pleaded guilty to health care fraud and wire fraud and must pay over $1.2 billion in combined restitution, in addition to forfeiting assets like luxury cars and properties.

SCOTTSDALE, Ariz. A Scottsdale couple who lived a luxurious lifestyle at the expense of taxpayers will now spend several years in federal prison.

What we know:

Jeffrey King and Alexandra Gehrke defrauded the Medicare system in a massive scheme, billing for “medically unnecessary wound grafts” for elderly and terminally ill patients. Court records say the two submitted $1.2 billion in false and fraudulent claims to health insurance plans, including Medicare, through companies they owned and operated.

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