$1.2 Billion Health Care Fraud - BUSTED

HEALTH CARE "Operation Brace Yourself" Leads to a Bust The Justice Department has charged 24 people in a $1.2 billion telemarketing scam. Officials said it was one of the largest health care fraud schemes in U.S. history...and the investigation was truly a marathon. They executed more than 80 search warrants across 17 federal districts, charging doctors and CEOs from New Jersey to California. How the scam allegedly worked (do not try this at home): A network of telemarketers in the Philippines and Latin America pitched “free” orthopedic braces to seniors eligible for Medicare. Doctors would write prescriptions for these braces, whether patients needed them or not. The prescriptions were sold to medical brace manufacturers, who shipped the equipment off and billed Medicare anywhere from $500 to $900 per brace. Cue kickbacks of almost $300/brace, per the AP. And where to launder the illicit profits? The usual suspects...exotic cars, yachts, and luxury real estate. Bottom line: IRS criminal investigations chief Don Fort said the scheme exploited the “systemic flaws in our health care system.”