MIAMI, (Reuters) – A band of conspirators in Miami defrauded the U.S. healthcare system by creating phony clinics that churned out $100 million of medical bills in five states, federal prosecutors said yesterday.
Some of the purported clinics were empty storefronts with handwritten signs while others existed only as post office boxes, but none provided any actual medical services, prosecutors said.
Eight defendants were indicted on charges ranging from conspiracy to commit Medicare fraud and money laundering to aggravated identity theft.
Medicare is a federal health insurance plan for the elderly and is one of many programs under scrutiny as part of an effort to overhaul the U.S. healthcare system.
Medicare fraud indictments are common in Florida, which has the nation’s largest percentage of elderly residents, but prosecutors said this case was notable for its scale.
“This case is remarkable, not only in terms of the amounts stolen from Medicare, but also in terms of its sophistication and geographic breadth,” said Jeffrey Sloman, acting U.S. attorney for the Southern District of Florida.
“These defendants attempted to steal approximately $100 million from the elderly, blind and disabled by using multiple store-front clinics in five different states and then laundered their profits through local check cashing stores,” he added.
Six defendants were arrested and two are fugitives.
