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US Justice Department Uncovers $2.75 Billion Healthcare Fraud, Charges 193 People

US Justice Department Charges 193 People in Massive Healthcare Fraud Bust

Editor Ritam English by Editor Ritam English
Jun 28, 2024, 11:01 am IST
US Justice Department Uncovers $2.75 Billion Healthcare Fraud, Charges 193 People

US Justice Department Uncovers $2.75 Billion Healthcare Fraud, Charges 193 People

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The US Justice Department has charged 193 individuals, including 76 doctors, nurses, and other medical professionals, in a major healthcare fraud operation worth $2.75 billion. This large-scale crackdown took place over two weeks and uncovered various illegal activities, including the distribution of millions of Adderall pills.

Among the schemes, $176 million involved fraudulent drug and alcohol abuse treatments. One defendant was accused of billing the federal Medicaid program for treatments that were either insufficient or never provided.

Attorney General Merrick Garland highlighted these fraudulent activities during a press conference, emphasizing the government’s commitment to bringing these criminals to justice.

The operation also focused on telemedicine fraud, with 36 individuals charged for submitting over $1.1 billion in false claims to the US Medicare program. Telemedicine, which has become more popular recently, was misused by these defendants to exploit the system.

The government seized over $231 million in cash, luxury vehicles, gold, and other assets during this law enforcement action, which spanned 32 federal districts. This significant seizure reflects the scale of the fraud and the extensive resources the perpetrators used.

In one notable case, seven people associated with the San Francisco-based telehealth startup Done Global were charged with illegally distributing Adderall, a drug used to treat attention deficit hyperactivity disorder (ADHD).

A nurse practitioner from the company was accused of prescribing 1.5 million Adderall pills with minimal patient interaction. The company’s founder and top doctor were already charged earlier this month.

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US officials suggested that fraud schemes like this may have contributed to the recent shortages of Adderall. The illegal distribution and over-prescription of the drug created significant supply issues.

The Justice Department’s criminal fraud unit led the investigations, with help from the Department of Health and Human Services Office of Inspector General, FBI, and Drug Enforcement Administration. Officials noted that they increasingly rely on data analytics to detect fraud schemes that endanger patients or cost the US government.

Attorney General Merrick Garland reaffirmed the government’s dedication to combating healthcare fraud. “The Justice Department will bring to justice criminals who defraud Americans, steal from taxpayer-funded programs, and put people in danger for the sake of profits,” he said. The spokesperson for Done Global did not immediately respond to a request for comment.

Tags: UShealthcareUS Justice Department
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