Nearly 200 individuals charged by Justice Department in $2.7 billion health care fraud crackdown

Attorney General Merrick Garland was photographed on June 27, 2024. The Justice Department has unveiled a comprehensive set of charges against nearly 200 individuals accused of engaging in healthcare fraud schemes, with false claims totaling over $2.7 billion. The charges were filed against more than 190 defendants, including 76 doctors, nurse practitioners, and other licensed medical professionals, in various federal courts across the country. The government has seized assets worth over $231 million, including cash, luxury vehicles, and gold.

During a news conference on Thursday, Attorney General Merrick Garland emphasized that anyone who profits from the illegal distribution of controlled substances, regardless of their professional background, will face consequences. In one case, two wound care company owners and two nurse practitioners allegedly performed unnecessary and costly wound grafts on elderly Medicare patients, many of whom were terminally ill, to submit fraudulent claims to Medicare.

In another case, three owners and executives of a medication wholesale distributor were accused of selling adulterated and misbranded HIV drugs. These drugs were obtained through buyback schemes, where the defendants repurchased prescription drugs from patients and then resold them to pharmacies nationwide. This led to patients receiving mislabeled prescriptions, resulting in severe consequences for some individuals.

Additional cases highlighted by the Justice Department include the unlawful distribution of millions of Adderall pills that were not medically necessary, the establishment of fake sober living homes claiming to provide addiction treatment to Native Americans, and the illegal prescription and distribution of opioids. The government’s crackdown on healthcare fraud underscores its commitment to holding individuals accountable for their participation in illegal activities within the healthcare system.