The accused, spanning across the United States, are implicated in a range of scams, including a $900 million scheme in Arizona that exploited terminally ill patients.
Attorney General Merrick Garland made the announcement, emphasizing the government's commitment to holding accountable those who unlawfully profit from the distribution of controlled substances. "It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company," Garland stated. “If you profit from the unlawful distribution of controlled substances, you will be held accountable.”
The Arizona case involves two owners of wound care companies, Alexandra Gehrke and Jeffrey King, who are accused of accepting over $330 million in kickbacks. The Justice Department alleges that they fraudulently billed Medicare for amniotic wound grafts, dressings designed to aid wound healing. Elderly patients, including those in hospice care, were subjected to these grafts, despite not requiring them. Tragically, some patients passed away on the day of receiving the grafts or shortly thereafter.
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In less than two years, fraudulent claims exceeding $900 million were submitted to Medicare for grafts used on fewer than 500 patients. Gehrke and King were apprehended at the Phoenix airport as they were preparing to board a flight to London. Their lavish lifestyle, funded by the fraudulent scheme, included luxury cars, a nearly $6 million home, and over $520,000 in gold bars, coins, and jewelry. Following Gehrke's arrest, officials seized more than $52 million from her personal and business bank accounts.
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The nationwide crackdown resulted in charges against 193 individuals, including 76 doctors, nurse practitioners, and other licensed medical professionals. The Justice Department seized more than $230 million in cash, luxury cars, and other assets. These periodic, sweeping efforts aim to deter potential wrongdoers and uphold the integrity of the healthcare system.
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Among the other fraudulent schemes uncovered was one targeting Native Americans with counterfeit sober living homes that promised addiction treatment. Claims were submitted for services that were never actually performed. Another case in Florida involved the distribution of misbranded HIV drugs, purchased on the black market and resold to unsuspecting pharmacies.
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These pharmacies then dispensed the medications to patients, some of whom received bottles containing different drugs than the label indicated. One patient was rendered unconscious for 24 hours after consuming what he believed to be his HIV medication, which was in fact an anti-psychotic drug.
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The Justice Department's ongoing efforts to combat healthcare fraud underscore the importance of maintaining the integrity of our healthcare system and protecting the vulnerable from exploitation. As this nationwide crackdown demonstrates, those who seek to profit unlawfully from the healthcare system will be held accountable, regardless of their position or profession.
