Pasadena Medical Fraud Crackdown News: 89 Arrested, $223 Million in Fraud Alleged

If you were arrested for Pasadena medical fraud recently, you have plenty of company.

In a massive bust a few months ago, the federal government arrested 89 people in Los Angeles, Houston, New York, Chicago, Detroit, Baton Rouge, Tampa, and Miami. Police grabbed documents, raided businesses, and aggressively pursued alleged wrongdoers. Of the 89 people snagged in the dragnet, 14 were nurses and doctors. Federal officials say that the 89 people collectively stole over $223 million from the taxpayers.

The schemes allegedly conducted were pretty diverse, although regular readers of our Pasadena criminal defense blog won’t be surprised:

• Some people pretended to be doctors to write fake prescriptions. Then they billed the federal government for the meds.
• In another scam, some folks bribed Medicare patients for their identification numbers and then billed the government for services never provided.
• The top suspect purchased a Ferrari and two Lamborghinis with the money he allegedly pilfered.

Eric Holder, the U.S. Attorney General, and Kathleen Sebelius, the head of Health & Human Services, worked with 400 federal agents to plan and execute the crackdown. Over the last four years, the anti-fraud Medicare strike force has arrested over 1,500 people and returned $8 for every dollar spent on investigations.

Despite these successes, Holder expressed doubt about whether the antifraud forces would continue to be funded at the same rate. The Justice Department may lose $1.6 billion due to sequestration. Holder worried to reporters that, “unless Congress adopts a balanced deficit reduction plan and stops the reduction currently slated for 2014, [our] capacity to protect the American people from healthcare fraud … will be further reduced.”

Implications for Pasadena Medicare Fraud Defendants
If you or someone you love got swept up in this dragnet — or if you stand accused of a Pasadena white collar crime, like insurance fraud or healthcare fraud — the team here at the Kraut Criminal & DUI Lawyers is standing by to listen to your story. We can give you the strategic guidance you need to regain a feeling of control. Get in touch with former prosecutor and Harvard Law School educated defense lawyer Kraut and his team today for the insights you need.

If you have been arrested for a crime in Pasadena, please contact Pasadena criminal defense attorney Michael Kraut for 24/7 assistance by phone at (323) 464-6453 or toll free at (888) 334-6344 or online.