Additional Coverage:
- Justice Department charges nearly 200 people in $2.7 billion health care fraud schemes crackdown (newsbreak.com)
WASHINGTON — The Justice Department revealed on Thursday that it has charged nearly 200 individuals nationwide in a massive operation targeting fraudulent health care activities, with fraudulent claims exceeding $2.7 billion.
Attorney General Merrick Garland shared details on the charges, which involved a myriad of professionals including doctors and nurse practitioners. Among the numerous fraudulent schemes uncovered was a staggering $900 million operation in Arizona that exploited terminally ill patients.
Garland emphasized the department’s stance on illegal profit from controlled substances, stating, “Whether you’re involved in a drug cartel, a corporate boardroom, or the medical field, if you engage in illegal drug distribution for profit, you will face the consequences.”
The spotlighted Arizona scam included accusations against two wound care company owners who allegedly took over $330 million in kickbacks. They are accused of falsely billing Medicare for unnecessary amniotic wound grafts on elderly and hospice care patients, some of whom died shortly after receiving the treatment.
Prosecutors noted that these fraudulent activities led to claims to Medicare worth more than $900 million for grafts on less than 500 patients. The accused company owners, Alexandra Gehrke and Jeffrey King, were recently apprehended at the Phoenix airport, allegedly attempting to flee to London, with their home revealing preparations for a possible escape.
Luxurious living funded by the scheme was highlighted by prosecutors, including expensive cars, a near $6 million residence, and significant amounts of gold. Following Gehrke’s arrest, over $52 million in assets were seized from her personal and business accounts.
The nationwide crackdown resulted in 193 individuals charged, among them 76 licensed medical professionals. Authorities also confiscated over $230 million in cash and valuables. These arrests are part of the Justice Department’s regular efforts to combat health care fraud across the country.
Other fraudulent activities unearthed included fake sober living homes defrauding Native Americans and a scheme in Florida involving the distribution of mislabeled HIV medication, leading to severe health risks for patients duped into using them.
For continuing coverage on the Justice Department’s actions, the AP directs readers to their dedicated hub for related news.