WASHINGTON — Hundreds of people nationwide, including dozens of doctors, have been charged in health care fraud prosecutions, accused of collectively defrauding the government of $1.3 billion, the Justice Department said on Thursday.

Nearly one-third of the 412 charged were accused of opioid-related crimes. The health care providers, about 50 of them doctors, billed Medicare and Medicaid for drugs that were never purchased; collected money for false rehabilitation treatments and tests; and gave out prescriptions for cash, according to prosecutors.

Some of the doctors wrote more prescriptions for controlled substances in a single month than entire hospitals wrote in that time, the acting director of the F.B.I., Andrew G. McCabe, said at a news conference in Washington of federal law enforcement and health care officials who announced the prosecutions.

“This event again highlights the enormity of the fraud challenge we face,” Attorney General Jeff Sessions said.</s>The U.S. Justice Department charged more than 400 doctors and others, including six from metro Detroit, in a nationwide sweep against health care fraud that cost taxpayers $1.3 billion, in part through bogus drug-treatment programs that contributed to the country's opioid epidemic, the Justice Department said.

The takedown, which Attorney General Jeff Sessions said on Thursday was the largest in U.S. history, charged doctors and other health care providers with crimes including money laundering and fraudulent claims to private insurers and the government. Many were accused of prescribing opioids and other narcotics and then illegally billing Medicaid and Medicare.

"Too many trusted medical professionals like doctors and nurses and pharmacists have chosen to violate their oaths and put greed ahead of their patients," Sessions said in Washington, D.C., announcing the first major health care enforcement action under his leadership. "Amazingly, some have made the practices into multimillion dollar criminal enterprises. They seem oblivious to the disastrous consequences of their greed."

Of the 412 people charged, 56 were doctors and 120 cases were related to opioids, Sessions said. Health-care providers submitted fraudulent bills to Medicare, Medicaid and a veterans program called Tricare for services that were unnecessary or never performed. They paid kickbacks to patient recruiters and beneficiaries, the U.S. said. The government is moving to suspend or ban 295 providers, including doctors, nurses and pharmacists from participating in federal health programs, Sessions said.</s>US announced charges against more than 400 people over health care scams worth $1.3 billion.</s>WASHINGTON (CBSMiami/AP) — More than 400 people have been charged with taking part in health care fraud and opioid scams that totaled $1.3 billion in false billing, said Attorney General Jeff Sessions on Thursday.

Sessions called the collective action the “largest health care fraud takedown operation in American history” and said it indicates that some doctors, nurses and pharmacists “have chosen to violate their oaths and put greed ahead of their patients.”

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.

Officials said those charged in the schemes include more than 120 people involved in illegally prescribing and distributing narcotic painkillers. Such prescription opioids are behind the deadliest drug overdose epidemic in U.S. history. More than 52,000 Americans died of overdoses in 2015 — a record — and experts believe the numbers have continued to rise.

“In some cases, we had addicts packed into standing-room-only waiting rooms waiting for these prescriptions,” acting FBI director Andrew McCabe said. “They are a death sentence, plain and simple.”

Nearly 300 health care providers are being suspended or banned from participating in federal health care programs, Sessions said.

“They seem oblivious to the disastrous consequences of their greed. Their actions not only enrich themselves, often at the expense of taxpayers, but also feed addictions and cause addictions to start,” Sessions said.

Health care fraud sweeps like Thursday’s happen each year across the country, but law enforcement officials continue to grapple over the best way to fight the problem.

The people charged were illegally billing Medicare, Medicaid and the health insurance program that serves members of the armed forces, retired service members and their families, the Justice Department said. The allegations include claims that those charged billed the programs for unnecessary drugs that were never purchased or given to the patients.</s>More than 400 people, including doctors, pharmacists and nurses, were charged in connection with a massive health care fraud scheme that bilked the federal government of more than $1 billion, officials from the Justice Department and Department of Health and Human Services announced Thursday.

About a quarter of those were charged with fraud specifically related to opioids.

Describing some of the cases brought, Attorney General Jeff Sessions said trusted medical professionals “have chosen to violate their oaths and put greed ahead of their patients.”

Health and Human Services Secretary Tom Price said the health care fraud bust targeted those who “maliciously contributed” to the nation’s opioid epidemic.

In all, 412 people, including 56 doctors, were charged as a result of the nationwide operation. The Justice Department said those accused have defrauded taxpayers of approximately $1.3 billion.

“Some doctors wrote out more prescriptions for controlled substances than entire hospitals were writing,” said FBI acting Director Andrew McCabe.

According to federal prosecutors, the individuals charged were involved in schemes in which they submitted claims to Medicare and Medicaid for treatments that were either medically unnecessary or never provided. Patient recruiters were used in some cases and paid cash kickbacks for collection beneficiary information for providers that would be used to submit fraudulent bills to the government.

“One fake rehab facility for drug addicts in Palm Beach is alleged to have recruited addicts with gift cards, visits to strip clubs, and even drugs-enabling the company to bill for over $58 million in false treatments and tests,” Mr. Sessions said.</s>WASHINGTON -- Attorney General Jeff Sessions on Thursday announced what officials are calling the largest health care fraud enforcement action in Justice Department history.

Sessions said 412 people nationwide stand charged in health care fraud schemes resulting in $1.3 billion in false billings.

Those charged include 115 doctors and other health care providers. The opioid epidemic was a major focus of the arrests and charges.

Many defendants were charged in connection with prescribing and distributing dangerous narcotics.

"Among those defendants announced today, 120 have been charged with opioid-related crimes, making this also the largest opioid-related fraud takedown in American history," Sessions said.

Sessions cited the U.S. Centers for Disease Control and Prevention for reporting that the opioid epidemic kills more than 90 people every day.

Sessions said close to 300 health care providers have been suspended or banned from participating in federal health care programs.</s>The following is a press release from an organization unaffiliated with Voice of OC. The views expressed here are not those of Voice of OC.

As Part of National Health Care Fraud Takedown, Federal Prosecutors in Los Angeles Charge 14 Defendants in Fraud Schemes that Allegedly Cost Public Healthcare Programs nearly $150 Million

LOS ANGELES – In the largest-ever health care fraud enforcement action by federal prosecutors, 14 defendants – including doctors, nurses and other licensed medical professionals – have been charged in the Central District of California for allegedly participating in health care fraud schemes that caused approximately $147 million in losses.

The defendants charged locally are among hundreds of people charged across the United States in cases that cumulatively allege approximately $1.3 billion in false billings. The nationwide sweep includes charges against more than 120 defendants – some of whom are doctors – who allegedly prescribed and distributed opioids and other dangerous narcotics.

In the Central District of California, 14 defendants were charged for their roles in schemes to defraud health insurance programs such as Medicare. The cases allege health care fraud and kickback schemes involving compounded drugs, home health services, physical therapy, acupuncture, Medicare Part D prescription drugs, diagnostic sleep studies and hospice care.

“Health care fraud schemes such as these threaten the vital trust between a patient and his or her health care provider, undermine the integrity of our health care system, and cost all Americans billions of dollars,” said Acting United States Attorney Sandra R. Brown. “Today’s announcement serves as a clear warning that we will continue to work with our law enforcement partners to identify and hold accountable health care professionals who commit these crimes.”

The defendants charged locally include four physicians, including Dr. Jeffrey Olsen, who was charged with illegally prescribing controlled substances, including the opiate oxycodone.

The 57-year-old Olsen surrendered to authorities on Tuesday after being indicted last week by a federal grand jury on 34 counts of illegally prescribing controlled drugs, including oxycodone, and one count of false statement on a DEA registration application. Olsen, a resident of Laguna Beach, allegedly sold prescriptions to addicts and drug dealers in exchange for fixed cash fees, without any medical basis for the prescriptions.

During the investigation, Olsen also sold hundreds of prescriptions to addicts in other states, such as Oregon, without ever seeing the “patients” for an in-person examination. In text messages to these out-of-state customers, Olsen allegedly told customers that, in exchange for exorbitant fees as high as $3,000, he would write prescriptions for whatever drug they wanted, and that he would never check whether they were actually taking the prescribed drugs or whether they were getting additional narcotic prescriptions from other doctors. Olsen allegedly sold more than 1.2 million pills of narcotics, which were almost entirely at maximum strength, in addition to hundreds of thousands of pills of other controlled drugs such as the sedatives Xanax and Soma. The case against Olsen is being prosecuted by Assistant United States Attorneys Ben Barron and Bryant Yang.

In another local case involving a physician, Dr. Thomas S. Powers and Anthony Paduano were arrested Tuesday on healthcare fraud charges that allegedly bilked TRICARE.

The indictment in this case alleges that Powers, of Santa Ana, authorized prescriptions for compounded medications for patients he never examined. Under an agreement, Paduano, of Newport Beach, allegedly paid Powers $200 for each prescription. Paduano received approximately $1.2 million for referring the prescriptions to a local pharmacy that billed TRICARE more than $4.8 million and was paid more than $3.1 million. This case is being handled by Assistant United States Attorneys Mark Aveis, Paul Stern and Cassie Palmer.

“Americans already struggling with health care issues and rising premiums are further burdened with each dollar lost to fraud,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The losses estimated in Los Angeles for this operation alone are staggering as the abundance of health care fraud schemes in southern California adds considerably to this nationwide crime issue. By collaborating with our partners, we will continue to hold accountable those who get rich by targeting federal health care programs with fraud.”

“Those who would enrich themselves through healthcare fraud – including billing for unnecessary services, accepting kickbacks, and billing for prescriptions that were never provided – are putting profits over patients, stealing from government health programs and taxpayers alike,” said Special Agent in Charge Christian Schrank, of the U.S. Department of Health and Human Services Office of Inspector General. “These operations show yet again our commitment to working with our federal and state law enforcement partners. In fighting this epidemic, we must all stand together.”

“IRS Criminal Investigation will not stand still while criminals line their pockets with illicit proceeds obtained from publicly funded health care programs,” said IRS Criminal Investigation Special Agent in Charge R. Damon Rowe. “It depletes scarce taxpayer dollars and will not be tolerated. IRS Criminal Investigation will continue to work with our federal and state law enforcement partners to bring justice to those individuals who prey on the nation’s health care system for their own personal greed.”

“Our office, in partnership with our fellow investigative agencies, will continue to uncompromisingly investigate and bring to justice the people who perpetrate these criminal acts,” said Amtrak Inspector General Tom Howard. We will remain vigilant in protecting Amtrak employees, retirees, and their dependents, by ensuring our health care dollars are not wasted on fraudulent providers,”

“The Department of Labor – Employee Benefits Security Administration will continue to vigorously investigate wrongdoers committing health care fraud against employer sponsored health plans in Southern California which also impact TRICARE, Medicare, Medicaid” said Crisanta Johnson, DOL-EBSA’s Los Angeles Regional Office.

The other cases filed in federal court in Los Angeles as part of the nationwide sweep are:
• Aniceto Baliton, of Diamond Bar, co-owner and managing employee of Bliss Hospice in Glendora, was charged yesterday with one count of conspiracy to pay and receive illegal remunerations for health care referrals. The charge stems from Baliton’s role in a fraud scheme to pay kickbacks in exchange for Medicare beneficiaries referred to Bliss and billed by Bliss for hospice services. As part of the fraud scheme, Baliton and the co-owners of the hospice also agreed to generate cash for the illegal kickbacks by disguising such monies as payroll expenses. Based on the referrals that Baliton and his co-conspirators obtained through illegal kickbacks, Bliss submitted claims to Medicare and was paid approximately $2.4 million. The case is being handled by DOJ Trial Attorney Claire Yan.
• Aleksandr Suris and Maxim Sverdlov, co-owners and operators of Royal Care Pharmacy in Los Angeles, were arrested Monday on charges related to a scheme that allegedly brought in more than $41.5 million from Medicare and CIGNA. The indictment in this case charges Suris with two counts of conspiracy to commit health care fraud and 10 counts of health care fraud, and Sverdlov with one count of conspiracy to commit health care fraud and four counts of health care fraud. The defendants allegedly submitted fraudulent bills for prescription drugs that were never filled by the pharmacy or were not provided to the person to whom the drug was prescribed. The case is being handled by DOJ Trial Attorney Robyn N. Pullio.
• Dr. Kanagasabai Kanakeswaran was indicted late last month on one count of conspiracy to pay and receive kickbacks for health care referrals and four counts of receiving kickbacks for health care referrals. The charges arise from a kickback conspiracy at a home health company called Star Home Health Resources. The owners and operators of Star allegedly paid kickbacks to referring physicians, including Dr. Kanakeswaran, in exchange for the physicians referring Medicare beneficiaries to receive home health services from Star. The indictment alleges that from May 2008 to May 2016, Star was paid $4,157,311 from Medicare based on home health services that Dr. Kanakeswaran referred to Star in exchange for illegal kickbacks. The case is being handled by Assistant United States Attorney Alex Porter and DOJ Trial Attorney Claire Yan.
• Jamen Oliver Griffith and Damon Glover were charged late last month with conspiring to solicit, receive and pay illegal kickbacks for health care referrals. The charges stem from defendants’ role in a scheme involving undisclosed payments for generating and steering prescriptions of compounded drugs to Valley View Drugs, Inc., a pharmacy located in La Mirada. As set forth in plea agreements that have been filed in court, Griffith and Glover owned and operated Western Medical Solutions, a “marketing” company that paid non-employee “marketers” to generate compounded drug prescription referrals for Valley View. Commission payments to “marketers” for prescription referrals were based on a percentage of the amount insurance companies reimbursed Valley View. Health insurers ultimately reimbursed Valley View $13,860,083 for prescriptions generated by WMS-affiliated marketers. In turn, Valley View paid WMS approximately $7,622,864 for the prescription referrals. The case is being handled by Assistant United States Attorney Ashwin Janakiram.
• Xiao “Kimi” Gudmundsen, a licensed acupuncturist and the owner of Healthy Life Acupuncture Center, Inc., which operated at two sites in Los Angeles and Riverside, was charged on June 22, with eight counts of health care fraud and three counts of money laundering. The charges arise from allegations that Gudmundsen recruited Amtrak employees to visit Healthy Life and then, among other things, billed the Amtrak health care plan for acupuncture and other services that were not actually provided. The indictment also charges that Gudmundsen laundered payments received from Amtrak for the false bills through various accounts, including accounts held in the names of relatives. Also charged in the indictment are Suzana Cortez, a Healthy Life employee (who faces five counts health care fraud) and Gladys Perez, an Amtrak employee (who faces two counts of health care fraud). This case is being handled by Assistant United States Attorney Poonam Kumar.
• James Chen pleaded guilty on June 19 to a health care fraud charge related to his pharmacy processing and billing TRICARE for approximately $62 million for fraudulent prescriptions for compounded medications after Chen paid more than 50 percent in referral fees to marketers. The case is being handled by Assistant United States Attorneys Mark Aveis, Paul Stern and Cassie Palmer.

Indictments and criminal informations contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

The cases from the Central District of California are the result of investigations conducted by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the Defense Criminal Investigative Service; the Drug Enforcement Administration; IRS Criminal Investigation; the Office of Personnel Management, Office of Inspector General; the Veterans Administration, Office of the Inspector General; the Department of Labor – Employee Benefits Security Administration; the California Department of Insurance, Fraud Division; the United States Postal Service, Office of the Inspector General; Amtrak’s Office of the Inspector General; the California Board of Pharmacy; California’s Department of Health Care Services; and the California Department of Justice.

The local cases were filed by Assistant United States Attorneys and Trial Attorneys with the Justice Department’s Medicare Fraud Strike Force. The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.

Voice of OC posts press releases to provide readers with information directly from organizations. We do not edit or rewrite press releases, and encourage readers to contact the originator of a given release for more information.</s>More than 80 people in Florida were charged in a nationwide crackdown on health care fraud and opioid scams that totaled $1.3 billion in falls billings, according to a release from the U.S. Department of Justice.

The action, which involved law enforcement agencies throughout the country and resulted in 400 arrests, was called the "largest health care fraud takedown operation in American history" by Attorney General Jeff Sessions. Sessions said it indicates that some doctors, nurses and pharmacists "have chosen to violate their oaths and put greed ahead of their patients."

In the Southern District of Florida, 77 defendants were charged in fraud schemes that totaled $141 million in false billings for home health care services, mental health services and pharmacy fraud.

One case involved the owner of an addiction treatment center and home for recovering addicts. The owner and another individual were charged with submitting more than $58 million in fake insurance claims for treatment.

According to the Department of Justice, the suspects recruited people where were addicted to drugs to move to South Florida. They would then bill insurance companies for fraudulent treatments. In exchange, the suspects would give the addicts gift cards, free airline travel, trips to casinos and strip clubs and drugs, the justice department said.

Ten people were charged in the Middle District of Florida with schemes that involved nearly $14 million in false charges, according to the Department of Justice.

One of those defendants misrepresented himself as a retired Lieutenant Commander of the U.S. Navy to gain the trust from TRICARE beneficiaries in order to steal their personal identities, the justice department said. Many TRICARE beneficiaries are members and veterans of the armed forces. The suspect and two others were charged with trying to defraud the TRICARE program of $4 million.

Of those charged nationally, more than 120 people were involved in illegally prescribing and distributing narcotic painkillers. Such prescription opioids are behind the deadliest drug overdose epidemic in U.S. history. More than 52,000 Americans died of overdoses in 2015 — a record — and experts believe the numbers have continued to rise.

"In some cases, we had addicts packed into standing-room-only waiting rooms waiting for these prescriptions," acting FBI director Andrew McCabe said. "They are a death sentence, plain and simple."

Nearly 300 health care providers are being suspended or banned from participating in federal health care programs, Sessions said.

"They seem oblivious to the disastrous consequences of their greed. Their actions not only enrich themselves, often at the expense of taxpayers, but also feed addictions and cause addictions to start," Sessions said.

Health care fraud sweeps happen each year across the country, but law enforcement officials continue to grapple over the best way to fight the problem.

The people charged were illegally billing Medicare, Medicaid and the health insurance program that serves members of the armed forces, retired service members and their families, the Justice Department said. The allegations include claims that those charged billed the programs for unnecessary drugs that were never purchased or given to the patients.</s>WASHINGTON — United States 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 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.</s>WASHINGTON (AP) — More than 400 people have been charged with taking part in health care fraud and opioid scams that totaled $1.3 billion in false billing, Attorney General Jeff Sessions announced Thursday.

Sessions called the collective action the “largest health care fraud takedown operation in American history” and said it indicates that some doctors, nurses and pharmacists “have chosen to violate their oaths and put greed ahead of their patients.”

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.

Officials said those charged in the schemes include more than 120 people involved in illegally prescribing and distributing narcotic painkillers. Such prescription opioids are behind the deadliest drug overdose epidemic in U.S. history. More than 52,000 Americans died of overdoses in 2015 — a record — and experts believe the numbers have continued to rise.

“In some cases, we had addicts packed into standing-room-only waiting rooms waiting for these prescriptions,” acting FBI director Andrew McCabe said. “They are a death sentence, plain and simple.”

Nearly 300 health care providers are being suspended or banned from participating in federal health care programs, Sessions said.

“They seem oblivious to the disastrous consequences of their greed. Their actions not only enrich themselves, often at the expense of taxpayers, but also feed addictions and cause addictions to start,” Sessions said.

Health care fraud sweeps like Thursday’s happen each year across the country, but law enforcement officials continue to grapple over the best way to fight the problem.

The people charged were illegally billing Medicare, Medicaid and the health insurance program that serves members of the armed forces, retired service members and their families, the Justice Department said. The allegations include claims that those charged billed the programs for unnecessary drugs that were never purchased or given to the patients.

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The U.S. Department of Justice charges 412 individuals with health care fraud. Collectively, these individuals are accused of collectively defrauding $1.3 billion from the U.S. government.