SEVENTEEN INDIVIDUALS CHARGED AND TWELVE LOCATIONS SEARCHED IN MAJOR HEALTH CARE FRAUD AND MONEY LAUNDERING PROSECUTION
announced four separate indictments charging 17 individuals for their participation in health care fraud and money laundering schemes in the Eastern District of New York. In addition, agents of Immigration and Customs Enforcement (ICE), the Federal Bureau of Investigation, and Internal Revenue Service searched offices of 12 durable medical equipment retail companies located in South Brooklyn that were operated by the defendants and seized assets from bank accounts maintained by the defendants’ retail companies.
According to the indictments, the defendants filed fraudulent claims with private insurance companies with no-fault insurance plans. Specifically, the defendants – through their retail companies – allegedly submitted false invoices to the insurance companies for reimbursable expenses for durable medical equipment at prices well in excess of the price paid by the defendants, as well as for durable medical equipment that was never obtained. The indictments allege that it was also part of the defendants’ schemes to engage in financial transactions to conceal the identity, source, and destination of the fraudulent proceeds by “laundering” them through checks they issued to the same wholesale companies. The checks were then negotiated at check cashing stores and the resulting cash was delivered back to the defendants.
According to the U.S. Attorney's press release, the indicted defendants are:
The press release notes that the charges announced are merely allegations, and the defendants are presumed innocent unless and until proven guilty.