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Brooklyn 1 of 5 Cities Busted in Medicare Fraud Case

Frank J. Dito, Jr.
Car accident, personal injury and workers’ compensation attorney serving Staten Island and Brooklyn New York.

Posted on Aug 02, 2010

July 16, 2010 - Brooklyn, NY - Brooklyn was one of 5 U.S. cities that saw federal agents making numerous arrests in the largest Medicare fraud bust since a specialized task force was created back in 2007.

ABC News reports that 94 people in 5 U.S. cities were arrested early this morning after a total of over $251 million in false claims were submitted to the government Medicare programs.

Miami, FL; Baton Rouge, LA; Detroit, MI; and Houston, TX were the other 4 cities where doctors, nurses, health care company owners, and medical billers were arrested. A single medical biller alone was charged with more then $49 million in fraudulent claims.

The schemes were relatively similar and simple: the defendants accepted cash kickbacks from the medical service providers to approve unnecessary services, or even services never rendered. The defendants would then bill Medicare for these bogus services which included HIV infusions, home health care, and physical therapy treatments.

Twenty-two arrests were made in Brooklyn alone. Those arrested were charged for their alleged participation in submitting more than $78 million in fraudulent Medicare claims. Among the defendants were owners and operators, patient recruiters, and employees at 3 different medical clinics and 1 medical equipment company, as well as 3 doctors.

There are also search warrants in progress for several health care fraud investigations in all 5 cities.

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