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Healthcare Fraud for Unnecessary Treatments Leads to Federal Criminal Charges

Federal authorities recently charged approximately 300 people with healthcare fraud, accounting for more than $900 million in false billings to Medicare and Medicaid.  Sixty licensed medical professionals, including thirty doctors, were among those arrested. 

This fraud stems from medically unnecessary treatments or services, or from services that were never provided to patients at all.  Some of the people arrested were involved in an $86 million scheme in Brooklyn where they paid kickbacks to patients who underwent unnecessary physical and occupations therapies.  The money from this scheme was then hidden in shell companies to avoid the IRS. 

Attorney General Loretta Lynch stated these crimes “target real people” and “abuse bonds of trust between doctor and patient…”  This investigation and series of charges is the largest health care fraud bust in the nation’s history.  

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