$143 Million in False Billings: FBI Unveils Massive Healthcare Fraud Scheme

The United States Department of Justice has announced the largest healthcare fraud scheme in history, exposing 14 defendants for their alleged participation in various healthcare scams that exploited the COVID-19 pandemic, resulting in over $143 million in false billings. The scheme involved medical professionals, corporate executives, and others who allegedly took advantage of the national emergency to line their own pockets instead of providing needed healthcare services. Deputy Attorney General Lisa O. Monaco stated, "The multiple health care fraud schemes charged today describe theft from American taxpayers through the exploitation of the national emergency."

Key Takeaways:

• The defendants allegedly submitted false and fraudulent claims to Medicare for over $143 million, including claims for COVID-19 tests, cancer genetic testing, allergy testing, and respiratory pathogen panel tests.
• The proceeds of the fraudulent schemes were allegedly laundered through shell corporations and used to purchase exotic automobiles and luxury real estate.
• The scheme involved various healthcare fraud schemes designed to exploit the COVID-19 pandemic, including the exploitation of expanded policies for telehealth services and the misuse of Provider Relief Fund monies.
• The Fraud Section is prosecuting the cases in seven federal districts across the United States, including the Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey, and the Eastern District of New York.
• The case in the Western District of Arkansas is being prosecuted by Senior Litigation Counsel James Hayes and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney's Office for the Western District of Arkansas.
• The law enforcement action was brought in coordination with the Health Care Fraud Unit's COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force.