These cases led to approximately $150 million in false billings and thefts from federal pandemic aid programs. Over $8 million was seized by the DOJ as cash and other fraud proceeds.
Some defendants were accused of offering COVID-19 tests to obtain personal identifying information as well as a sample of saliva or blood. The samples and information were then used to fraudulently submit Medicare claims for expensive, unnecessary tests or services.
Federal agents in Colorado searched through trash from a man to discover a scheme to sell and produce fake vaccination records. New York and Maryland have been accused of using the information of people who had sought COVID testing at drive through sites to fraudulently submit claims for long office visits that never took place.
Assistant Attorney General Kenneth Polite stated that today’s enforcement action sent a clear message that the Department of Justice will not stop at nothing in order to eradicate COVID-19-related health care fraud wherever it may be located. “The Department of Justice is committed protecting the American people as well as the vital health care benefits programs that support them in this national emergency. We will also hold those who abuse these programs accountable to the fullest extent permitted by law.
Lourdes and Imran Shams, both 63-year-old, were indicted in an alleged scheme of defrauding Medicare. They are accused of running a laboratory that submitted false and fraudulent claims totaling nearly $144 million for COVID and respiratory disease tests. According to the indictment, the tests were not eligible for reimbursement and were procured using kickbacks or bribes. Shams and Navarro also concealed their roles in this lab due to previous convictions for health care fraud.
Mark Werksman, Navarro’s lawyer, stated Wednesday that his client denied the charges. He looks forward to Shams’s day in court to prove she did not do anything illegal in relation to her lab work. Werksman suggested that he might make a special appearance at court for Shams who does not have a lawyer.
Others are also accused of using telehealth policies that were in place during the pandemic to misappropriate money for frontline doctors and fabricating and distributing fake vaccination records cards.
Nearly a year ago, the DOJ conducted a similar nationwide enforcement campaign that involved 14 defendants. The total amount of false billings was approximately $143 million. Both enforcement actions were supported by numerous federal and local law enforcement agencies.
Last month, the Justice Department appointed Kevin Chambers as chief prosecutor for pandemic Fraud. This is in keeping with President Joe Biden’s State of the Union promise that it would pursue criminals who have stolen billions of relief money.