The Justice Department’s National Fraud Enforcement Division (Fraud Division) today announced the formation of the West Coast Health Care Fraud Strike Force, a multi-district enforcement initiative uniting the Division’s Health Care Fraud Section with the U.S. Attorney’s Offices for the District of Arizona, District of Nevada, and Northern District of California. The Health Care Strike Force model has proven to be one of the most powerful tools in the federal enforcement arsenal, responsible nationally for the prosecution of over 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion.
Key details of the case
“Driven by data showing a significant and accelerating increase in health care fraud across all three districts, the Strike Force builds on a foundation of recent landmark prosecutions. Including the successful prosecution of digital health technology executives in the Northern District of California and the dismantling of Medicaid, sober home, and wound care fraud schemes in the District of Arizona,” said Assistant Attorney General Colin McDonald of the Justice Department’s Fraud Division. “The Fraud Division is committed to bringing that same relentless, data-driven prosecutorial force to bear across every corner of this region, making unmistakably clear that no scheme is too sophisticated, no network too large or small.
Moreover, no fraudster too distant to escape federal accountability.”. “Silicon Valley has become ground zero for technology-driven health care fraud schemes that seek to cheat taxpayer-funded programs like Medicare,” said Craig H. Attorney for the Northern District of California.
Meanwhile, “The Health Care Strike Force announced today is a powerful partnership that brings together the resources and expertise needed to detect and dismantle even the most sophisticated fraud schemes.”. “Defrauding the government steals from Americans who need help the most. In Arizona alone, federal law enforcement and the United States Attorney’s Office have disrupted fraud schemes worth over a billion dollars of taxpayer money,” said Timothy Courchaine, U.S.
Enforcement actions and official statements
Attorney for the District of Arizona. “Our mission as part of the West Coast Health Care Fraud Strike Force is to ensure Americans who need critical services are not used as pawns to make bad actors rich. Through excellent investigations, trial work, and seizures of ill-gotten gains, the District of Arizona will continue safeguarding those services.”. For complete details, refer to the official DOJ press release.
As a result, “The dedicated Assistant U.S. Attorneys and professional staff in the District of Nevada are working in coordination with our partners at the FBI, HHS, DEA and other federal, state. Local agencies to unravel fraud schemes and to hold criminals fully accountable,” said First Assistant U.S.
Attorney Sigal Chattah for the District of Nevada. “With each indictment and conviction, we are achieving justice for victims who were taken advantage of by these fraudsters. We are proud to be part of the newly created West Coast Health Care Fraud Strike Force and we are committed to bringing our skill and expertise to the Justice Department’s fight against fraud.”. For related coverage, see Sinaloa Cartel Leader Charged with Narcoterrorism, Material Support of Terrorism and Drug Trafficking — DOJ.
This expansion brings enhanced federal enforcement resources to one of the nation’s most significant health care technology hubs in the Northern District of California and what data analytics show is the migration of fraud schemes to Arizona and Nevada. Late last year in San Francisco, the CEO and Chief Medical Officer of a digital technology company were convicted for an over $100 million scheme to commit health care fraud and distribute over Adderall over the internet, resulting in addiction and patient harm. These convictions followed other recent high-impact prosecutions that were jointly prosecuted by the Strike Force and U.S.
Specifically, as part of the expansion, Health Care Fraud Acting Chief Jacob Foster and Acting Assistant Chief Gary Winters will coordinate closely with the U.S. Attorneys’ Offices to establish the Strike Force. The Strike Force will work in partnership with the HHS Office of Inspector General, the Federal Bureau of Investigation, the Drug Enforcement Administration. For related coverage, see Former member of the air force pleads guilty to multi-year bid rigging schemes and conspiracy to defraud u.s. air force — DOJ.
Subsequently, other law enforcement partners, reflecting the Department’s determination that the need for coordinated, aggressive action in this region is urgent and undeniable. Health care fraud in these districts imposes an enormous and growing burden on American taxpayers and undermines the integrity of Medicare, Medicaid. TRICARE.
At the same time, the victims are real: elderly patients denied access to legitimate care, disabled individuals whose benefits are stolen by criminal networks. Low-income families who rely on these programs for basic medical services. The Strike Force’s west coast expansion makes clear that the Fraud Division will use every available legal tool to identify, investigate.
In particular, prosecute these offenses. Members of the public are encouraged to report wrongdoing in the health care industry. The new Department-wide corporate enforcement policy for criminal matters creates incentives for companies to voluntarily disclose when misconduct occurs.
Furthermore, “DEA’s involvement in the West Coast Fraud Task Force demonstrates our continued commitment to work across government to safeguard the health and safety of our communities. Our message to health care professionals who profit their patients’ pain is clear: if you use your license to harm the public, you will be held accountable,” said Assistant Administrator Cheri Oz, DEA Diversion Control Division. “Whether you are a medical professional who diverts controlled substances, like Adderall or Xanax.
Investigation and prosecution details
A criminal enterprise that defrauds federal health care programs and private insurers, DEA will continue its pursuit of those who exploit our health care system and poison our communities.”. “The FBI is proud of the work we do to combat health care fraud. We are eager to continue investigating those who illegally abuse our systems,” said Assistant Director Heith Janke of the FBI’s Criminal Investigative Division. “This Strike Force allows for further joint actions that will prevent more criminals from lining their pockets at the expense of the American taxpayer.
