Feds Announce $1.3B Health Care Fraud and Opioid Scam Bust; Over 400 Arrested

Attorney General Jeff Sessions listens at left as Health and Human Services Secretary Tom Price speaks during a news conference about opioid addiction, Thursday, July 13, 2017, at the Justice Department in Washington. (AP Photo/Jacquelyn Martin)

(SBN) – What’s being billed as the the “largest health care fraud takedown operation in American history,”  Trump administration officials said Thursday that over 400 medical professionals have been charged in connection with a scheme that defrauded the government of some 1.3-billion dollars.  In one instance, according to the DOJ,  a fake drug rehab in Palm Beach recruited addicts with gift cards, strip-club visits and even drugs to the tune of $58 million in false treatments and tests.

Attorney General Jeff Sessions and HHS Secretary Tom Price announced the charges Thursday.

SBN’s Kim Lampkins has more …


Meantime, during the Obama administration, federal authorities charged some 300 people in more than half the states with health care fraud in June of 2016.

The arrests accounted for over $900 million in false billings to Medicare and Medicaid.  At the time, then Attorney General Loretta Lynch said, “This takedown should make clear, health care fraud is not an abstract violation or benign offense. It is a serious crime. The wrongdoers that we pursue in these operations seek to use public funds for private enrichment.”

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