More than COVID-19 infections and deaths have taken a toll on the world since the start of the pandemic. For example, 21 people – including doctors – were charged this week for participating in fraud schemes that exploited the pandemic, according to the U.S. Department of Justice.
Cases tied to the 21 individuals “allegedly resulted in over $149 million in COVID-19-related false billings to federal programs and theft from federally-funded pandemic assistance programs,” the department said. Additionally, the department seized $8 million in cash and other fraud proceeds.
“Throughout the pandemic, we have seen trusted medical professionals orchestrate and carry out egregious crimes against their patients all for financial gain,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division.
Those charged with fraud this week include defendants who allegedly offered COVID-19 testing to obtain patients’ personal identifying information and a saliva or blood sample.
“In one such scheme in the Central District of California, two owners of a clinical laboratory were charged with a health care fraud, kickback, and money laundering scheme that involved the fraudulent billing of over $214 million for laboratory tests,” including $125 million of allegedly fraudulent claims for COVID-19 and respiratory pathogen tests, according to the Justice Department.
Proceeds from the scheme were allegedly laundered through shell corporations and used to purchase real estate and luxury items.
“The Department of Justice’s Health Care Fraud Unit and our partners are dedicated to rooting out schemes that have exploited the pandemic,” Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division said Wednesday. “Today’s enforcement action reinforces our commitment to using all available tools to hold accountable medical professionals, corporate executives, and others who have placed greed above care during an unprecedented public health emergency.”
Other alleged fraudsters include owners of medical clinics in the District of Maryland and the Eastern District of New York. In separate cases, those charged reportedly obtained confidential information from patients seeking COVID-19 testing at drive-thru testing sites, then submitted fraudulent claims for lengthy office visits with the patients that never happened.
Another type of health care fraud scheme saw defendants allegedly exploit Centers for Medicare and Medicaid Services policies that increased access to care during the COVID-19 pandemic. Two defendants were also charged for schemes targeting the Provider Relief Fund, which is part of the Coronavirus Aid, Relief, and Economic Security Act.
Manufacturers and distributors of fake COVID-19 vaccination record cards were also charged this week.
“One defendant allegedly misused her position as the Director of Pharmacy at a northern California hospital to obtain real lot numbers for the Moderna vaccine that were then used to falsify COVID-19 vaccination record cards,” said the Justice Department.
“This COVID-19 health care fraud enforcement action involves extraordinary efforts to prosecute some of the largest and most wide-ranging pandemic frauds detected to date,” said Director for COVID-19 Fraud Enforcement Kevin Chambers. “The scale and complexity of the schemes prosecuted today illustrates the success of our unprecedented interagency effort to quickly investigate and prosecute those who abuse our critical health care programs.”
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