The US Department of Justice conducted the most comprehensive health care fraud operation in the country's history. Charges were filed across 45 states against a total of 455 defendants accused of causing over $6.5 billion in losses to Medicare and Medicaid programs.
Deputy Attorney General Todd Blanche described the operation as "the largest federal and state joint effort in history to combat health care fraud." Blanche stated, "Fraudsters can no longer rob American taxpayers. If you try to harm or deceive Americans, we will find you, seize your assets, and prosecute you to the fullest extent of the law."
Charges against 10 defendants in Southern California
As part of the operation, federal prosecutors in the Central District of California filed criminal charges against 10 defendants accused of defrauding government health care programs or misusing their positions as medical professionals to illegally prescribe controlled substances.
$270 million fraudulent prescription scheme
Five individuals arrested in the Los Angeles area are alleged to have been involved in a scheme that submitted approximately $270 million in fraudulent claims to the Medi-Cal program for expensive prescription drugs. Whittier resident Christina Mareik, 61, is accused of facilitating fraudulent prescriptions that led to approximately $270 million in claims to Medi-Cal. The program paid over $178 million of those claims.
According to prosecutors, the claims covered expensive drugs containing low-cost generic components. These drugs were either not medically necessary or were never provided to the alleged recipients. Mareik was arrested on June 17 and charged with health care fraud.
$27 million hospice fraud scheme
A 16-count indictment was prepared against Oren David Shachar from the San Fernando Valley, Abraham Shin from Corona, and Jeannie Choi from Torrance. The three defendants are accused of conspiring to defraud Medicare of approximately $27 million.
Charges include conspiracy to commit health care fraud, health care fraud, aggravated identity theft, monetary transactions involving criminally derived property exceeding $10,000, and violations of the Anti-Kickback Statute.
