DOJ arrests 193 during nationwide crackdown on $2.75B in healthcare scams
The U.S. Department of Justice (DOJ) has charged 193 people in a nationwide crackdown on $2.75 billion in healthcare fraud schemes.
During a press conference, Attorney General Merrick Garland announced the arrests, which include doctors, nurses, and other clinicians accused of various scams that defrauded insurance companies, patients and Medicare.
The 193 medical professionals are charged in separate cases, and the arrests and charges happened over the last few weeks. The DOJ said authorities have seized more than $230 million in assets from the accused.
In one notable case, the DOJ said they charged individuals in a $900 million scam in Arizona that exploited injured and dying patients. Two owners of an Arizona care clinic, Alexandra Gehrke and Jeffrey King, are accused of taking more than $330 million in kickbacks in a scheme that billed Medicare for unnecessary wound treatments.
Clinicians in that case are accused of performing amniotic grafts and bandaging wounds for patients who did not need care, pressured by Gehrke and King to do so. The DOJ said in court papers that some patients died as a result. More than $900 million was allegedly billed to Medicare for the dubious care, attributed to around 500 patients.
King and Gehrke were arrested as they attempted to board flights to London, the DOJ said. They are currently being held in jail awaiting trial. King and Gehrke are married and allegedly owned a $6 million home and had millions of dollars stored in bank accounts, which have been seized by federal police.
“As healthcare fraud schemes continue to evolve, so will the Justice Department’s investigative and prosecutorial strategies,” Garland said during the press conference. “Our messages to those seeking to exploit patients and defraud government programs is clear: You cannot hide your crimes. We will find you, and we will hold you accountable.”
Other cases include bogus sobriety clinics, mislabeled HIV drugs sold to pharmacies and distributed to patients, and a scheme that siphoned money from Native American tribes, the DOJ noted.
The accused are awaiting trial and there were no convictions announced as part of the nationwide sweep.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.