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Feds Nab 91 in $295M Medicare Fraud Sting

Accused 'treated' dead people, ran Florida housing scheme

By Kevin Spak,  Newser Staff

Posted Sep 8, 2011 9:50 AM CDT

(Newser) – The Obama administration notched yet another win for its Medicare fraud team yesterday, as the Justice Department announced the arrests of 91 fraudsters from across the country, accused of bilking Uncle Sam for a combined $295 million. “The defendants allegedly treated the Medicare program like a personal piggy bank,” said one department official. Doctors and nurses were among the perps, accused of a variety of schemes; one particularly brazen Detroit doctor billed for “treatment” he’d given to dead people, the San Francisco Chronicle reports.

Arrests were made in Houston, Baton Rouge, LA, Detroit, Dallas, New York, and Chicago, but more than half of them, 46, were made in South Florida, the AP observes. Homeless or drug-addicted disability recipients were promised housing there—which turned out to be crowded, dilapidated assisted-living facilities—as long as they agreed to unnecessary mental health services. “South Florida remains ground zero for healthcare fraud,” said a Miami-based FBI agent, according to Reuters.

Attorney General Eric Holder speaks about Medicare fraud enforcement at the Justice Department in Washington, Wednesday, Sept. 7, 2011.
Attorney General Eric Holder speaks about Medicare fraud enforcement at the Justice Department in Washington, Wednesday, Sept. 7, 2011.   (AP Photo/Jacquelyn Martin)
Nurses and doctors were among those busted.
Nurses and doctors were among those busted.   (Shutterstock)
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COMMENTS
Showing 3 of 60 comments
YouLikeDont
Sep 8, 2011 10:40 PM CDT
I guarantee the overwhelming majority of these fraudsters are Republicans who don't want to be taxed on their stolen earnings.
zdaydream
Sep 8, 2011 2:04 PM CDT
My daughter-n-law is just giddy that this was done in Liberal Southern Florida.  But like I told her, it's not the drug addicts, retirees, and others who were duped into this.  It's the doctors and nurses who were doing this.  The very same ones who are looking for Torte Reform.  Why, they're frauds period.  <:-)
fractal
Sep 8, 2011 1:33 PM CDT
Does anyone here remember the Bush administration ferreting out Medicare corruption at the top, instead of targeting the poor, at the bottom?
 

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