In a sweeping nationwide crackdown on healthcare fraud schemes, the United States Department of Justice has charged nearly 200 individuals, revealing a staggering $2.7 billion in false claims. Attorney General Merrick Garland announced the charges on Thursday, targeting doctors, nurse practitioners, and others involved in a range of scams.
Among the cases highlighted is a $900 million scheme in Arizona that specifically targeted dying patients. Prosecutors have accused two owners of wound care companies, Alexandra Gehrke and Jeffrey King, of accepting over $330 million in kickbacks. The scheme involved fraudulently billing Medicare for amniotic wound grafts, which are dressings used to aid wound healing. Shockingly, nurse practitioners were allegedly pressured to apply these grafts to elderly patients, including those in hospice care, who did not require them. Tragically, some patients died either on the day they received the grafts or within days, according to court documents.
Gehrke and King were apprehended at the Phoenix airport as they were attempting to board a flight to London. Authorities found incriminating evidence at their residence, including a book titled “How To Disappear: Erase Your Digital Footprint, Leave False Trails, and Vanish Without a Trace.” Another book discovered in their packed bags was titled “Criminal Law Handbook: Know Your Rights, Survive The System.” Prosecutors allege that the couple, who recently got married, were aware of the impending charges and had been preparing to flee.
The lavish lifestyle enjoyed by Gehrke and King, allegedly funded by the fraudulent scheme, has been detailed in court papers. Luxury cars, a nearly $6 million home, and more than $520,000 worth of gold bars, coins, and jewelry were cited as evidence. Following Gehrke’s arrest, authorities seized over $52 million from her personal and business bank accounts.
In total, 193 individuals have been charged in a series of separate cases brought over a span of two weeks as part of this nationwide healthcare fraud sweep. The crackdown has resulted in the seizure of more than $230 million in cash, luxury cars, and other assets. The Justice Department conducts these extensive efforts periodically to serve as a deterrent to potential wrongdoers.
Other cases uncovered during the operation include a scheme in Arizona where a woman is accused of billing the state’s Medicaid agency for substance abuse treatment services that either served no purpose or were never provided. Additionally, a Florida case involves the distribution of misbranded HIV drugs, with drugs purchased on the black market and resold to unsuspecting pharmacies. Some patients received bottles containing different drugs than indicated on the label, leading to severe consequences, such as one patient becoming unconscious for 24 hours after unknowingly taking an antipsychotic drug instead of their prescribed HIV medication.
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This is absolutely sickening! It's infuriating to think that there are individuals out there who would exploit the healthcare system for their own personal gain. $2.7 billion in false claims is an astronomical amount of money that could have been used to actually help people in need. These fraudsters are not only stealing from taxpayers, but they are also potentially putting lives at risk by diverting resources away from those who truly require medical assistance. It's high time that these criminals face severe consequences for their