Prosecutors charge 4 physicians in $146M healthcare fraud scheme

Brooklyn prosecutors have charged 20 people, including four physicians, and 14 corporations in a $146 million healthcare fraud scheme, according to The Wall Street Journal.

According to prosecutors, the defendants performed unnecessary tests, such as allergy tests and ultrasounds, on patients whom they paid to come to the clinics, and then billed Medicaid and Medicare for the services. Those involved in the scheme allegedly recruited patients from various places, including a soup kitchen, and transported them to the clinics for tests in exchange for $30 or $40.

"The case presents a cruel theme: The point of the enterprise was to steal money from Medicare and Medicaid by subjecting the most vulnerable people who reside with us in our city to unnecessary tests and imaginary care," Acting Brooklyn District Attorney Eric Gonzalez said at a news conference Tuesday, according to WSJ.

The defendants were charged in an 878-count indictment with several crimes, including fraud, money laundering and enterprise corruption. Each of the defendants faces up to 25 years in prison.

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