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More Than 400 Charges In Health Fraud Schemes Worth $1.3 Billion

Last updated on Friday, July 14, 2017

(INDIANAPOLIS) - U.S. prosecutors have charged more than 400 people with taking part in health care fraud and opioid scams that totaled $1.3 billion in false billing.

Attorney General Jeff Sessions announced the charges on Thursday. Officials say those charged include more than 120 people involved in prescribing and distributing narcotics. In prepared remarks, Sessions calls it the "largest health care fraud takedown operation in American history."

Among those charged are six Michigan doctors accused of a scheme to prescribe unnecessary opioids. A Florida rehab facility is alleged to have recruited addicts with gift cards and visits to strip clubs, leading to $58 million in false treatments and tests.

Sessions says nearly 300 health care providers are being suspended or banned from participating in federal health care programs.

Attorney General Curtis Hill announced that his office made vital contributions to the healthcare fraud takedown. According to a release by Hill's office, the Medicaid Fraud Control Unit (MFCU) played a key role in seven federal criminal investigations that uncovered more than $1 million in Medicaid fraud, leading to the indictment of 15 individuals and two companies on various charges.

They investigated licensed healthcare professionals and medical offices where suspected illegal activity occurred. Investigators uncovered illegal practices such as false and fraudulent billing; distributing and prescribing controlled substances without legitimate medical purpose; and money laundering schemes. One investigation revealed that a transportation company was billing for trips that were never taken, uncovering more than $440,000 in fraudulent claims.

"Medicaid fraud is not a victimless crime," Hill said. "When licensed professionals and organizations target those who rely on Medicaid, they're also putting taxpayers on the hook. These actions truly impact all of us. The culmination of these investigations is extremely rewarding for the investigators and lawyers in our Medicaid Fraud Control Unit who work tirelessly to bring these offenders to justice. I applaud their efforts."

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