Fraud in the News

Biggest health care fraud in U.S. history

The U.S. Department of Justice (DOJ) recently announced charges in the largest health care fraud scheme in history. According to a July 13 New York Times article, U.S. Charges 412, Including Doctors, in $1.3 Billion Health Fraud by Rebecca R. Ruiz, health care providers falsely billed insurance companies for tests and drugs never issued to patients. Also, the providers gave drug prescriptions in exchange for cash.

According to the article, one drug treatment facility in Delray Beach, Florida, billed insurance companies for treatments such as urine testing in excess of more than $50 million.

Of the 412 individuals charged with fraudulent activity, one-third of the prescriptions were for opioids and other narcotics. These controlled substances often end up on the streets adding to the drug abuse crisis. Acting administrator of the U.S. Drug Enforcement Administration, Chuck Rosenburg, claimed the opioid drug crisis to be “an epidemic,” which resulted in 59,000 overdose deaths last year. According to sources cited in the article, efforts of this major crackdown should have an impact on the war on drugs.

That's a rap

As reported in a July 14 Washington Post story by Derek Hawkins, Rapper DMX dodges $1.7 million in taxes by ‘maintaining a cash lifestyle,’ prosecutors say, rap star DMX was arrested and charged with defrauding the federal government by concealing millions of dollars in income. The rapper, whose real name is Earl Simmons, 46, allegedly failed to report $1.7 million in tax liabilities to the Internal Revenue Service.

Over a period of several years, Simmons allegedly avoided reporting his income through strategic moves. He’d create bank accounts in other people’s names and lived mainly on cash when paying for expenses. Part of the indictment claims that Simmons refused to appear on the show “Couples Therapy” unless paid by check without tax withholdings. This charge is just one of more than a dozen other arrests that make up the rapper’s criminal history.

Trademark troubles

A July 10 news release from the Federal Trade Commission (FTC) announced a newly discovered consumer scam: trademark fraud. Fake companies purporting to be associated with the U.S. Patent and Trademark Office (USPTO) are tricking patent and trademark holders to pay for false services. These companies appear to use official-looking mailings and forms to copy the look of the USPTO. The solicitation asks holders to renew their trademark registration, sign up for protection services or list on a private (fake) registry. However, these services aren’t part of the official USPTO.

The USPTO advises trademark and patent holders to closely review any solicitation mailed or emailed to them. Anything mailed will come from Alexandria, Virginia. Anything emailed will have the domain of “@uspto.gov.”