Miami group charged in $100 mln Medicare fraud

MIAMI, (Reuters) – A band of conspirators in Miami  defrauded the U.S. healthcare system by creating phony clinics  that churned out $100 million of medical bills in five states,  federal prosecutors said yesterday.

Some of the purported clinics were empty storefronts with  handwritten signs while others existed only as post office  boxes, but none provided any actual medical services,  prosecutors said.

Eight defendants were indicted on charges ranging from  conspiracy to commit Medicare fraud and money laundering to  aggravated identity theft.

Medicare is a federal health insurance plan for the elderly  and is one of many programs under scrutiny as part of an effort  to overhaul the U.S. healthcare system.

Medicare fraud indictments are common in Florida, which has  the nation’s largest percentage of elderly residents, but  prosecutors said this case was notable for its scale.

“This case is remarkable, not only in terms of the amounts  stolen from Medicare, but also in terms of its sophistication  and geographic breadth,” said Jeffrey Sloman, acting U.S.  attorney for the Southern District of Florida.

“These defendants attempted to steal approximately $100  million from the elderly, blind and disabled by using multiple  store-front clinics in five different states and then laundered  their profits through local check cashing stores,” he added.

Six defendants were arrested and two are fugitives.