The DOJ’s $2.5 billion healthcare fraud takedown

The DOJ has its lasso out again (yeehaw!). Yesterday, the agency announced that it’s charged 78 individuals with $2.5 billion in healthcare fraud as part of a coordinated law enforcement effort.

And, as you’d expect when talking about billions worth of fraud, some of the alleged schemes outlined in the agency’s press release are both sneakier than Mr. Deeds’ butler and larger than anything Danny Ocean has ever planned.

• In the biggest case, three individuals are alleged to have used a massive telemarketing operation + a software system that generated templates of false doctors’ orders to fraudulently file more than $1.96 billion (😳) in false claims with Medicare for reimbursement.
• In another case, the owner and a corporate officer of a pharmaceutical company allegedly sold more than $150 million in repackaged HIV medication obtained from the street to pharmacies. Some of the bottles contained the wrong medication, improper labels, broken pills, and pebbles.

All told, 24 doctors and numerous healthcare execs, as well as nurses and other licensed medical professionals were charged. Officials also seized more than $10 million in cash, cars, houses, and a boat.

💰🚨 Zoom out: Fraud, it seems, is a high-priority item on DC’s agenda this week. According to a separate report released by the Inspector General of the Small Business Administration on Tuesday, at least $200 billion – or 17% – of the $1.2 trillion in federal aid disbursed to small businesses during the pandemic may have gone to scammers.