The Departments of Justice and Health and Human Services have expanded Medicare Fraud Strike Force operations to Brooklyn, N.Y., Tampa, Fla., and Baton Rouge, La.
Known as Healthcare Fraud Prevention & Enforcement Action Teams (HEAT), they're part of a program that was launched in May by the DOJ and HHS to enhance cooperation between the two departments to reduce and prevent Medicare and Medicaid fraud. In that announcement, Attorney General Eric Holder and HHS Secretary Kathleen Sebelius announced the expansion of the strike force into Detroit and Houston to build upon existing partnerships between the agencies in a heightened effort to reduce fraud and recover taxpayer dollars.
“Along with teams already operating in Miami, Los Angeles, Houston and Detroit, these strike force operations will allow us to concentrate our agents and resources on the criminal hubs where we know a significant share of fraud occurs,” said Sebelius in announcing the expansion into three new cities. “The announcement we’re making is a significant step towards securing Medicare for seniors today and generations to come.”
In related news, 30 people have been charged in three cities for their alleged roles in schemes to submit more than $61 million in false Medicare claims, according to Sebelius and Assistant Attorney General Lanny A. Breuer of the DOJ's Criminal Division.
Five indictments were unsealed in Miami, Detroit and Brooklyn following the arrests of 25 people in Miami, four in Detroit and one in Brooklyn. In addition, strike force agents executed four search warrants at businesses and homes in Coconut Creek, Fla., Miami and Brooklyn.
According to court records, the defendants allegedly submitted claims to Medicare for products and services that were medically unnecessary and often not provided. Charges include conspiracy to launder money, money laundering, criminal false claims, making false statements and receiving kickbacks.
The physicians, business owners, executives and others charged in the indictments are accused of conspiring to submit approximately $61 million in false claims to the Medicare program.
“We will continue to dedicate the resources necessary to root out the fraud and bring those perpetrating it to justice. This type of fraud is not victimless – we are all victims when our healthcare system is defrauded,” said Kevin Perkins, Assistant Director of the FBI’s Criminal Investigative Division.
Since operations were launched in March 2007 in Miami (phase one), Los Angeles (phase two), Detroit (phase three), Houston (phase four) and Brooklyn (phase five), the strike force has obtained indictments of more than 460 individuals and organizations on charges of falsely billing the Medicare program for more than $1 billion.