Busted: 91 Doctors, Nurses, Medical Professionals Charged In $430M Medicare Fraud
Dr. Robert Kolbusz of Chicago (left) and Dr. Joseph Megwa of Dallas (right), were among those facing serious charges for medicare fraud
The U.S. Justice Department and the Department of Health and Human Services discovered alleged false billing schemes involving $230 million in home health services, over $100 million in mental services, and $49 million from ambulance transportation. Ninety-one people, including: doctors, nurses, and other medical professionals, have been charged with committing over $430 million in Medicare fraud in seven U.S. cities. The scheme is the largest of its kind, according to Attorney General Eric Holder. The announcement marks the latest case in a concerted crackdown against Medicare fraud by an inter-agency Medicare fraud strike force.
The charges the suspects face range from healthcare fraud and conspiracy to wire fraud, kickback violations, identity theft and money laundering. In a news conference, Holder said that the case reveals an alarming trend of criminal attempts to steal billions of taxpayer dollars for personal profit. ”Today’s enforcement actions reveal an alarming and unacceptable trend of individuals attempting to exploit federal health care programs to steal billions in taxpayer dollars for personal gain,” Holder said. Assistant Attorney Lanny A. Breuer agreed, adding: “Today’s coordinated actions represent one of the largest Medicare fraud takedowns in Department of Justice history.” Breuer continued : “We have made it one of the Department’s missions to hold accountable those who abuse the Medicare program for personal profit.”
Medicare Fraud Strike Force operations targeted health care workers in seven cities – Brooklyn, Baton Rouge, Chicago, Dallas, Houston, Los Angeles, and Miami. According to Holder, Dr. Joseph Megwa, was writing 33,000 prescriptions for some 2,000 patients between 2006 and 2011. Dr. Megwa, who practices in Dallas, allegedly signed off these documents without reviewing them, causing $103.3million in false billings. According to the Dallas Morning News, the 58-year-old’s alleged defrauding was the costliest. The doctor, who works at Raphem Medical Practice in Arlington, was indicted on conspiracy and health-fraud. The Justice Department alleges that Megwa helped patients in their homes as he travelled abroad. Two nurses, Ferguson Ikhile, and Ebolose Eghobor, were indicted along with the doctor. The three remain in federal custody.
Similarly, dermatologist Dr. Robert Kolbusz of Chicago, was charged with falsely diagnosing his patients and billing Medicare for treatments that were not given, according to the Chicago Tribune reported. Seven individuals in Houston were charged for giving kickbacks of cigarettes, coupons, and food to Medicare recipients who would in turn just watch TV or play games instead of receiving the services that were billed to Medicare. The fraud allegedly led to $158 million in fraudulent billing.
In Miami, 33 suspects were arrested and charged with fraud of more than $200 million, according to NBC Miami. Breuer said that owners and operators at one Miami psychiatric hospital gave cash kickbacks to owners of assisted living facilities in order to obtain more patients. They then billed the social insurance plan more than $67million, often for services that were never offered, or patients they never actually had. Breuer added that these 33 medical professionals then billed Medicare for the cash they used as kickbacks for their false patients. Little else is known about those charged in the city.
Holder condemned the fraud as one that “siphons precious taxpayer resources, drives up heath care costs, and jeopardizes the strength of the Medicare program.” He added: “They also victimize the most vulnerable members of society, including elderly, disabled, and impoverished Americans.” The strike force was created under the healthcare reform law as a means of curbing waste, fraud and abuse within the $590 billion Medicare program that provides healthcare benefits to approximately 50 million elderly and disabled beneficiaries.
In February of 2011, 111 medical practitioners were charged in a $225million Medicare fraud, which was the largest of its kind at that time.
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You are absolutely right, this does go on more than we think. When we go to a doctor, we used to sign off on a sheet detailing what care was given and what the insurance company was being billed for. After we left the office other billings were placed on the sheet that we signed. It’s not done that way now and Lord knows how they do it but believe me fraud is still alive and kicking.
It’s called ‘white collar’ crime! In other words, these bastards will not spend too much time in jail, if any!
We are nothing but guinea pigs because these witch doctors are experimenting on us Black people with the pills they produce in their labs!!!
IT’S CALLED MEDICAL APARTHEID!!!
Interesting. A situation was brought to the DOJ’s attention in this regard and Mr. Holder did not even extend the courtesy of a response. How convenient to show all these victories at voting time.
When a situation is being investigated, there is usually no response until the probe is complete.Now it is.
@BB go jurk off a mormon..
What about jails and prison medical fraud? Inmates in jails and prison are given medication and being labeled as having mental issue. There should be an investigation in this big racketeering enterprise.
@ Eica, An acknowledgement of your correspondence is always sent out before any action, if any takes place. This is proper protocol for any business or government agency. Not sure what “Now it is” is referring to.
One more thing, what about Dr. referrals. This is just one more way Medicare is being defrauded. Dr’s are referring patients to other Dr.’s who always come up with a reason for extended procedures or unnecessary surgeries. I have sinus problems, I told my primary Dr. As soon as I mentioned it, he told me, I probably had a deviated septum. He sent me to a specialist who then determined I needed surgery for a deviated septum. This entire process is nothing but a game. The unecessary procedures, scripts, tests and office visits are major ways in which fraud is being committed. And, ALL of the Dr’s are in on it. Another thing, most Dr’s own the office buildings they work in. The Dr. I know rents space to a sleep clinic. She tried to convince me for 3 months that I had a problem sleeping, and recommended a Dr. in her building for evaluation. So he could agree and recommend worthless procedures for me. She did this so he could expand his business, so she could continue to charge hin rent. Medical fraud is wide spread and being committed in many ways, I don’t feel the government is aware of. Most Dr.’s committ some sort of fraud each day, they just don’t get caught.
When convicted there punishment should be work ferlow and be pad $10.00 per hour. for 10 years. Thats right.
I can’t believe a person in there right mind could or would say its President Obama’s fault these healthcare professional are committing healthcare fraud. This mess been going on longer than he’s been in office. These are professionals we rely on to do the right thing by us, the patients, the community and society. These doctors, nurses and the other healthcare professionals should loss there license for committing fraud.
Now they need to crack down on all the unnecessary prescriptions that they write out in order to get their kickbacks and extravagant gifts from the pharmaceutical companies. What a disgrace!!