U.S. Attorney General Merrick Garland delivered a speech on June 22, 2023 in Washington, DC.
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The Department of Justice made an announcement on Wednesday, revealing that 78 individuals have been charged with involvement in healthcare fraud and opioid abuse schemes, amounting to a staggering $2.5 billion.
According to the DOJ, these defendants exploited programs meant for the care of elderly and disabled individuals, and in some instances, they utilized the ill-gotten funds to purchase luxury cars, jewelry, and yachts.
Among the individuals charged, 11 are accused of submitting fraudulent claims through telemedicine, amounting to $2 billion, while 10 are charged in relation to fraudulent prescription drug claims.
In a coordinated effort, charges were filed against individuals in 16 states, with cases being brought forward or unsealed over the last two weeks.
The accused include “physicians and other licensed medical professionals who prioritized their own financial gains, at times endangering patients by unlawfully providing unnecessary opioids,” stated the DOJ in a press release.
Attorney General Merrick Garland emphasized the significance of these enforcement actions, stating, “These actions, including one of the largest healthcare fraud schemes ever prosecuted by the Justice Department, demonstrate our heightened determination to combat fraud and hold accountable those who benefit from it.”
In the specific case highlighted by Garland, executives of purported software and services companies filed $1.9 billion in fraudulent claims with Medicare for items that were ineligible for reimbursement, as reported by the DOJ.
The defendants in this case, which include Brett Blackman and Gregory Schreck from Johnson County, Kansas, and Gary Cox from Maricopa County, Arizona, allegedly utilized mass telemarketing operations to sell unnecessary medical equipment and prescriptions to the elderly and disabled, according to an indictment from the U.S. District Court for the Southern District of Florida.
The trio allegedly operated a software platform known as DMERx, which facilitated the generation of fake and fraudulent doctors’ orders in exchange for illegal kickbacks and bribes.
Blackman served as the CEO of the company responsible for operating the software, while Schreck held the position of vice president of business development. Cox was the CEO of the company that previously owned the platform before a corporate acquisition.
This is an ongoing story. Please check back for updates.
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