53 Arrested in Medicare Fraud Scheme

Attorney General Eric M. Holder, Jr. and FBI Director Robert S. Mueller's comments at news conference announcing indictments in a $50 million fraud scheme.

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Mueller: The schemes outlined in today’s indictments involved persons who arranged unnecessary and non-existent treatment for straw patients who were willing to go along with the scheme for money.

Holder: The individuals indicted today include 16 company owners and executives, as well as 4 doctors, 8 medical personnel, 6 employees and 19 patient beneficiaries. Combined, they are accused of conspiring to submit more than $50 million in false claims to the Medicare program.

Mueller: This is not a victim-less crime - every person who struggles to pay for health care benefits; every older person who worries about Medicare’s ability to cover them; every taxpayer who helps fund these programs-these are all victims.

We in the FBI now have more than 2,400 pending health care fraud investigations. In addressing these investigations, we are focused on partnerships, intelligence, and information sharing.

For example, we have task forces and working groups to address health care fraud in every one of our 56 field offices, and we are shifting resources to fraud hot spots – such as we found in Detroit – where necessary.

We are using sophisticated techniques – from undercover operations to wiretaps – not only to collect evidence for prosecution, but also to find and stop criminals before they take action.

By pursuing these methods, we can reduce the long-term damage to the American economy and the citizens we serve.

Holder: As demonstrated by today’s charges and arrests, we will strike back against those whose fraudulent schemes that not only undermine a program upon which 45 million aged and disabled Americans depend, but who also which contribute directly to rising health care costs that all Americans must bear.

Mueller: Working together with our federal partners and these groups and associations, we have obtained 408 convictions and recovered more than 643 million dollars this fiscal year alone.

We will continue to work together to identify and stop those who would line their own pockets with taxpayer money – those who seek to benefit at the expense of our health care system, our economy, and our collective well-being. Thank You.

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