Federal Agencies Break Up $1.2 Billion Medicare Fraud Scheme

Federal officials on Tuesday announced breaking up a $1.2 billion Medicare scheme that preyed on elderly and disabled patients, The New York Times reports. Investigators say the racket that involved the prescription of unnecessary support braces is one of the largest health care frauds in United States history. The defendants — made up of both medical professionals and telemarketers — would allegedly contact Medicare beneficiaries and coerce them into getting free or low-cost back, shoulder, wrist and knee braces that were then paid for by the organization. The defendants are also accused of laundering the money received through shell companies, then using it to buy items such as exotic cars, yachts and luxury real estate.

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