Huge Medicare Scam Busted

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Thursday, October 14, 2010 - 9:58am

More than 70 people in five states charged with bilking millions from Medicare.

It's being labeled as the largest single case of medicare fraud ever.

Federal prosecutors charged 73 people in five states with running a gigantic scam
that billed Medicare for $163-million in treatments that were never given.

The FBI says that criminal enterprise is an Armenian-American organized crime group based in New York and Los Angeles with operations that extend throughout the U.S. and abroad.

NBC News has learned that the Medicare system paid out some $35 million before realizing something was wrong.

The warning signs included pathologists, who do autopsies, billing for live office visits,
eye doctors billing for bladder tests and ear nose and throat specialists billing for
Pregnancy ultrasounds.

Arrests also took place in Georgia, New Mexico and Ohio.

The FBI says the indictments charge numerous crimes including healthcare fraud, racketeering, money-laundering, identity theft, credit card fraud and immigration fraud.
 

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