*ISLAMABAD – One of the largest healthcare frauds in American historycaused more than $1 billion in losses after hundreds of thousands ofpatients were lured into the scheme, US investigators said Tuesday,announcing charges against 24 people.*
The alleged scheme involved the provision of wrist, knee and other bracesto elderly and/or disabled patients who did not need them, but who werecovered by the Medicare public insurance system.
They were lured by an international telemarketing network involving callcenters in the Philippines and Latin America, the Department of Justicesaid.
The defendants allegedly paid doctors to prescribe the braces withoutmeeting patients.
“Proceeds of the fraudulent scheme were allegedly laundered throughinternational shell corporations and used to purchase exotic automobiles,yachts and luxury real estate in the United States and abroad,” DOJ said ina statement.
Medicare got the bills which allegedly reached more than $1.7 billion inclaims.
Those charged in the multi-state operation included CEOs and otherexecutives with telemedicine companies, the owners of dozens of medicalequipment firms, and doctors.
DOJ said the schemes involved “more than $1.2 billion in loss.”
Administrative penalties were also issued against 130 orthopedic equipmentsuppliers, DOJ said.
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“Today, one of the largest healthcare fraud schemes in US history came toan end,” said Robert Johnson, assistant director of the FBI, one of severalagencies involved.
US Attorney Sherri Lydon, of South Carolina, added that white collar crimeis not victimless.
“All taxpayers will endure the rising cost of healthcare premiums andout-of-pocket costs as a result of fraud on our Medicare system,” Lydonsaid.
The Medicare system was created in the 1960s to provide public healthinsurance for Americans older than 65. It has been extended to the poorest,disabled, children, and military veterans, now covering 112 million people.
But the system is regularly defrauded.
The Medicare Fraud Strike Force, created in 2007, has charged nearly 4,000people related to billings of more than $14 billion in total, DOJ said. -APP/AFP
