Brooklyn Medicare Fraud Strike Force Charges 12 Individuals for Participating in Health Care Fraud Schemes Totaling More Than $95 Million

The defendants are charged with a variety of health care fraud-related and money laundering offenses in two indictments and a superseding indictment filed in federal court in Brooklyn, N.Y. Eleven defendants were arrested or surrendered to authorities today. The last defendant is expected to surrender at a later time.

"Today, 12 individuals—including three medical doctors and other licensed health professionals—were charged with participating in sophisticated Medicare fraud and money laundering schemes throughout Brooklyn and Queens," said Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division. "According to court documents, these defendants sought to profit by stealing millions of taxpayer dollars from the Medicare program and laundering the proceeds of this illegal activity. The Medicare Fraud Strike Force, which operates in nine cities across the country, will continue to aggressively pursue those intent on cheating American taxpayers and stealing from the Medicare program."

"These defendants allegedly invested significant time and energy in subterfuge to conceal their ill gotten government funds. Money laundering is a critical part of large scale health care fraud schemes and often the most difficult piece to unravel. Law enforcement will not be deterred by the schemes and evasions used to hide these proceeds of fraud. We will 'follow the money' and bring to justice all who would engage in financial transactions designed to disguise the proceeds of Medicare fraud," stated Loretta E. Lynch, U.S. Attorney for the Eastern District of New York. Ms. Lynch expressed her grateful appreciation to the FBI and HHS-OIG, the agencies responsible for leading the government's investigation, and thanked the New York State Attorney General's Office for its assistance.

"What all these criminal schemes have in common is the exploitation of Medicare," said FBI Assistant Director in Charge Janice K. Fedarcyk. "A program to help seniors manage the costs of health care was here abused to line the pockets of unscrupulous doctors and others. Medicare and Medicaid are taxpayer funded, so the outrageous conduct of these defendants victimized everyone. The FBI is committed to policing health care fraud, to catch the crooks and to rein in costs."

"Physical therapy fraud and illegal financial kickbacks remain a problem in the Brooklyn area," said Thomas O'Donnell, Special Agent in Charge of the HHS-Office of Inspector General's (OIG) New York Region. "So, along with federal and state law enforcement partners, we will target these and similar schemes that divert valuable, scarce Medicare funds."