DOJ charges 200 in $2.7 billion health care fraud crackdown
The Justice Department has charged nearly 200 individuals in a nationwide crackdown on health care fraud schemes totaling $2.7 billion. Among the various cases, a $900 million scheme in Arizona has been particularly notable. Two owners of wound care companies, Alexandra Gehrke and Jeffrey King, are accused of accepting over $330 million in kickbacks for fraudulent Medicare claims involving amniotic wound grafts, which were reportedly applied to fewer than 500 patients, many of whom were terminally ill. The pair were arrested at the Phoenix airport while attempting to board a flight to London.
Additionally, the Justice Department seized more than $230 million in cash, luxury cars, and other assets. Another significant case in Arizona involves a woman accused of billing $146 million to the state’s Medicaid agency for substance abuse treatment services that were never provided. Furthermore, a separate case in Florida involves the distribution of misbranded HIV drugs. Attorney General Merrick Garland emphasized that anyone profiting from the unlawful distribution of controlled substances will be held accountable.
