Yesterday, the Federal Bureau of Investigation and the Department of Justice uncovered the largest medical fraud in United States history, reporting nearly $15 billion in losses. Fifty federal districts participated in the investigation, which included 324 defendants, 96 medical professionals charged, and $245 million in seized assets. Matthew Galeotti, head of the Criminal Division at the Department of Justice, said approximately $14.6 billion was submitted in false claims to Medicare, Medicaid, and other health care programs. Galeotti stated that these schemes can increase the national deficit and threaten the long-term viability of healthcare for seniors, people with disabilities, and citizens in need of these services.
During this investigation, the Department of Justice seized luxury vehicles, property, and charged defendants from foreign nations, including Russia and Pakistan. For example, Galeotti stated the investigation uncovered a scheme involving an operation by individuals from Russia and Eastern Europe who purchased dozens of medical supply companies in the U.S. and, in turn, submitted more than $10 billion in fraudulent health care claims to Medicare. The perpetrators used stolen identities of over a million Americans to further this scheme, and federal agents arrested key members of this organization at airports and the U.S.-Mexico border.
The Department of Justice further stated these results were only possible through the partnership of federal and state agencies, and the days of transnational criminal organizations using the American healthcare programs as their personal piggy banks are now over.
If you believe you are impacted by this sweeping announcement, the white-collar litigators at Buchanan are ready, willing, and able to assist you and address any questions you may have.
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