Seven Nebraskans, including one doctor, charged in national health care fraud takedown

Seven Nebraskans, including one doctor, charged in national health care fraud takedown

The charges were filed in federal court in Brooklyn and Central Islip, New York as part of a nationwide health care fraud crackdown, led by the Medicare Fraud Strike Force, which resulted in criminal charges against 601 individuals involving an alleged $2 billion in fraudulent claims.

Defendants include a doctor, a psychiatrist and a chiropractor, said Coleman, the top federal prosecutor for the western half of Kentucky. "We will continue to find, arrest, prosecute, convict, and incarcerate fraudsters and drug dealers wherever they are", Sessions said. "If you're a doctor and you're prescribing unsafe narcotics in a reckless or irresponsible manner, we're coming after you". Officials said the defendants moved around 17,750 units of Hydrocodone, 2,580 units of oxycodone, 1,895 units of Xanax, 210 units of Ambien, 570 units of Phentermine and 600 units of Soma.

In the Los Angeles-based Central District, most of the medical professionals were charged with schemes to defraud health insurance programs such as Medicare. Because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims, aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.

Approximately 64,000 people died in the US from drug overdoses in 2016, The Washington Post reported.

"Our drug epidemic here in Kentucky is the challenge of our times", the state's attorney general, Andy Beshear, said at the news conference.

Dr. Chandra Reddy and his wife Vinodini Reddy were charged with two counts conspiracy to commit health care fraud and one count of conspiracy for making false statements.


John Steiner, 35, of Lewiston, Idaho, is a pharmacist who is charged in an indictment with multiple counts of obtaining controlled substances by fraud. An attorney for Steiner declined to comment Thursday.

South, Nelson, Boykin and Whitten also are charged with varying counts of health care fraud, and Whitten also faces a charge of aggravated identity theft. In many cases, investigators said, patient beneficiaries were paid cash kickbacks for supplying information to medical providers.

An attorney representing Chandra Reddy and Crosby declined to comment Thursday. "Rooting out health care fraud is central to the well-being of both our citizens and the overall economy".

Agents executed a search warrant at the business located off Corporate Drive near Dairy Ashford.

The Department of Justice announced its largest healthcare fraud takedown ever, charging 601 people for falsely billing Medicare, Medicaid and the USA military's TRICARE program to the tune of more than $2 billion.

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