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Dozens Charged In $100M Medicare Fraud Scam

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Handcuffs - File Photo

Handcuffs – File Photo

NEW YORK (AP/1010 WINS/WCBS 880) — Federal prosecutors in New York City say dozens of people are charged in a $100 million Medicare fraud scam with overseas connections. Authorities call it the largest Medicare fraud ever by a single criminal enterprise.

LISTEN: 1010 WINS’ Carol D’Auria reports
LISTEN: WCBS 880’s Monica Miller reports

Authorities said Wednesday that 44 people are charged in New York City, and most of them are in custody. Others were arrested in Los Angeles. Authorities said some suspects have links to an Armenian organized crime group and sent money abroad.

The suspects allegedly stole the identities of both doctors and patients, and set up phantom clinics and bank accounts. Authorities say they used the names to submit about $100 million in bills, and got back more than $35 million from Medicare.

The scheme involved over 100 fake health care providers in about 25 states.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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