The Department of Justice (DOJ) has announced a series of fraud charges against another 18 people who work in the fitness sector, adding doctors and nurses, for allegedly stealing a total budget of $490 million from federal programs related to fitness and COVID.
“Today’s announcement marks the largest coordinated law enforcement action ever taken in U. S. physical care fraud schemes exploiting the COVID-19 pandemic,” said Assistant Attorney General Kenneth A. Polite Jr. of the DOJ Criminal Division, in a news release.
This action follows two other enforcement actions, in May 2021 and April 2022, that pursued fraud schemes.
Those charged with the crimes have benefited from pandemic-era relief programs, adding the Health Resources and Services Administration’s (HRSA) COVID-19 Uninsured Program, Paycheck Protection Program (COMP), Economic Disaster Loan Program (EIDL), and Health Care Program. Fraud Unit Vendor Emergency Fund (FRP) initiative. They also fraudulently billed Medicare and sold thousands of COVID vaccination cards.
The U. S. Government Accountability OfficeThe U. S. Department of Agriculture (GAO) has reported in the past that pandemic relief systems are vulnerable to major fraud, in part because they “lack adequate controls to prevent, detect, and fraudulent and other payments. “For the EIDL and Solo in PPP systems, the GAO noted that the government estimated that “abusive payments” amounted to $36. 7 billion in 2022.
Lab Test Scam for Seniors
Lourdes Navarro, 64, of Glendale, Calif. , ran the Matias Clinical Laboratory with her husband, Imran Shams. They conducted COVID testing for citizens of nursing homes, rehabilitation centers, assisted living facilities, and elementary and secondary schools. Although court documents say Navarro and Shams were in the past barred from participation in all federal physical care programs, they billed Medicare, HRSA and a personal insurer for respiratory pathogen panel (RPP) testing, but allegedly fraudulently added requests for tests that their consumers did not order or were not needed.
They also reportedly told HRSA that some patients had been diagnosed with COVID when they had not been reimbursed for RPP testing requests. His replacement indictment alleges an “additional loss” to payers of $241 million and a reimbursement to the lab of another $39. 9 million. In Matias’ bank accounts, cash was transferred between them to use on “real estate, luxury items and family expenses,” according to court documents.
False billing for the uninsured
Anthony Hao Dinh, DO, of Orange County, California, is believed to be a $230 million fraud employing HRSA’s uninsured program, which aimed to provide uninsured patients with access to COVID testing and remedies. The owner of Elite Care Medical Group and two surgical centers was the nation’s second-largest provider for the program and reportedly filed remedial requests for insured patients and billed for services not provided or medically unnecessary. According to court documents, Dinh charged the uninsured program for “soldier services” who had insurance.
The otolaryngologist would have used a large amount of cash to trade high-risk options. According to court documents, he lost more than $100 million between 2020 and 2022. He also used the budget to buy a $1. 1 million house. and transferred the assets to his wife. Dinh is accused of two other individuals, who allegedly submitted 70 fraudulent loan programs to the PPP and EIDL systems to offload $3 million in loans.
COVID Snowshoe Test Kit
Latresia Wilson, MD, PA, 60, of Ocala, Florida, and Corey Alston, 45, CEO of Heritage Pharma Group, are accused of illegally purchasing identity numbers of Medicare beneficiaries to bill for the over-the-counter COVID verification kit program that were not eligible for Medicare reimbursement. They reportedly filed more than $8. 4 million in claims to Medicare for those check kits, regardless of whether Medicare beneficiaries asked for the checks. Medicare paid more than $2. 6 million based on claims, purported court documents, and reimbursement to Alston and “withheld a portion of Medicare reimbursement bills for its own use. “
COVID Help for Luxury Cars, Real Estate, and Vacations
Melissa J. Watson, DNP, 50, of Slidell, Louisiana, owned a number one care clinic and a purported medical spa before the pandemic, and allegedly submitted false and fraudulent documents to HRSA’s PRF and EIDL systems as part of a scheme to offload $1. 1 million for those companies, which she spent for private use. The FRP was intended to provide funding to medical professionals offering COVID treatments, and the EIDL provided low-interest loans to small businesses impacted by the pandemic.
According to the Justice Department, Watson used the budget to buy two luxury cars, “thousands” of dollars in real estate, a boat, a trailer, a timeshare and “several luxury vacations. “another user and $32,000 to probation as a component of a court-ordered restitution for the same user. The government seized $500,000 from Watson’s bank accounts, as well as his boat, trailer and Range Rover Sport.
COVID Midwife Card Program
Two board-certified nurse-midwives who ran a practice called Midwifery in Albany, Sharon Springs and Saratoga, New York, were charged with conspiracy to defraud the United States by distributing approximately 2700 fake COVID vaccination cards. Kathleen Breault, CNM, 65, and Kelly McDermott, CNM, 61, has registered their practice as a COVID vaccine administration site and has one of the busiest sites in New York State, “outperforming the giant state-run vaccination sites despite being a small hands-on midwife. “
Because they were registered as vaccine providers, they obtained authentic COVID vaccination cards and forged them to imply that the vaccinations had taken place when they had not. According to court documents, Breault and McDermott even held vaccination days, met with people and destroyed vials. of COVID vaccines from administering them. They allegedly provided vaccination cards to minors who were not eligible for the vaccine and to non-U. S. citizens.
The COVID Hustle Online
A Utah man reportedly manufactured and sold up to 120,000 fake COVID vaccination cards to consumers across the country, especially in states with tighter COVID restrictions, such as New York. Nicholas Frank Sciotto, 32, of Salt Lake City, sold most of the cards through Facebook and charged $10 according to the card, and presented a discounted rate of $7. 50 each for orders of $100 or more (plus shipping costs), according to court documents. Co-defendant Kyle Blake Burbage, 32, of Goose Creek, South Carolina, allegedly purchased and resold several packages of Sciotto cards.
According to the Justice Department, “the defendants undermined CDC’s COVID-19 vaccination program and other government standards and protocols for protection and fitness. “They are charged with conspiracy to defraud the United States by obstructing the CDC’s COVID-19 vaccination program.
Sophie Putka is a MedPage Today company and researcher. His paintings have been published in The Wall Street Journal, Discover, Business Insider, Inverse, Cannabis Wire, etc. He joined MedPage Today in August 2021. Follow