PHOENIX (AZFamily) — The Justice Department announced on Thursday that nearly 200 individuals have been charged in a sweeping nationwide crackdown on health care fraud schemes, with false claims totaling over $2.7 billion. This massive effort is part of the department's ongoing mission to combat fraudulent activities that exploit the healthcare system.

In Arizona alone, more than $1 billion in fraudulent claims were uncovered, including a staggering $900 million scheme that targeted terminally ill patients. Attorney General Merrick Garland detailed the extensive charges against a wide array of medical professionals, including doctors, nurse practitioners, and other healthcare workers, who were allegedly involved in these deceptive practices across the United States.

“It does not matter if you are a trafficker in a drug cartel or a corporate executive or medical professional employed by a health care company, if you profit from the unlawful distribution of controlled substances, you will be held accountable,” Garland asserted in his statement.

Major Arizona Cases Unveiled

In one of the most significant Arizona cases, prosecutors accused Alexandra Gehrke and Jeffrey King, owners of wound care companies, of orchestrating a scheme to defraud Medicare by billing for amniotic wound grafts. These grafts, designed to help heal wounds, were fraudulently billed for over $330 million in kickbacks. The scheme involved pressuring nurse practitioners to apply these expensive grafts to elderly patients who did not need them, including individuals in hospice care.

Court documents revealed that some patients tragically died on the day they received the grafts or within days. Over a span of less than two years, the fraudulent claims amounted to more than $900 million, despite the grafts being used on fewer than 500 patients. The extreme nature of this fraud underscores the severity and callousness of the scheme.

Gehrke and King were arrested earlier this month at Sky Harbor Airport as they attempted to board a flight to London. Prosecutors allege that the couple, who had recently married, were aware of the impending charges and were preparing to flee the country. At their residence, authorities found a book titled “How To Disappear: Erase Your Digital Footprint, Leave False Trails, and Vanish Without a Trace.” Additionally, one of their packed bags contained a book titled “Criminal Law Handbook: Know Your Rights, Survive The System,” suggesting they were well-prepared for potential legal confrontations.

Another Arizona Case: Substance Abuse Treatment Fraud

In a separate Arizona case, a woman is accused of fraudulently billing the state’s Medicaid agency $146 million for substance abuse treatment services that were either unnecessary or never provided. Prosecutors allege she engaged in a scheme to pay kickbacks in exchange for patient referrals. These patients were recruited from vulnerable populations, including the unhoused and Native American reservations.

This woman is also charged with money laundering, as she allegedly used the fraud proceeds to make substantial purchases. Additionally, she faces charges of obstruction of justice for purportedly falsifying records in response to a grand jury subpoena, attempting to cover up the fraudulent activities.

Nationwide Sweep and Broader Implications

In total, 193 individuals were charged in a series of separate cases brought over approximately two weeks as part of this nationwide health care fraud sweep. Authorities seized over $230 million in cash, luxury cars, and other high-value assets, aiming to dismantle the financial foundations of these fraudulent operations.

The Justice Department periodically carries out these comprehensive health care fraud operations to deter potential wrongdoers and maintain the integrity of the health care system. These efforts are critical in preserving trust in medical institutions and ensuring that resources are allocated to those truly in need.

Attorney General Garland emphasized the importance of these crackdowns, stating, “These actions send a clear message: the Department of Justice will not tolerate those who exploit vulnerable populations and defraud our healthcare systems for personal gain. We will continue to pursue and bring to justice those who engage in such schemes.”

The extensive investigations into these cases involved collaboration between multiple federal and state agencies, highlighting the concerted effort to combat health care fraud on a national scale. As the investigations continue, additional charges and arrests may follow, underscoring the ongoing commitment to root out fraud in the healthcare industry.