Author: Erin Elizabeth

This week, the federal government raided dozens of locations belonging to doctors and medical equipment companies who were suspected of taking part in a massive telemarketing scam that targeted Medicare recipients and cost taxpayers nearly $1 billion. In all, 24 people were charged and that included three licensed medical professionals as well as company CEOs. The scam used telemarketers from the Philippines and Latin America who sought out elderly patients eligible for Medicare by using TV and radio ads, as well as cold calls, promising a free or low-cost brace for their back, shoulder, wrist or knee. “Once the scammer obtained a person’s insurance information, the companies would bill Medicare and mail the patients unnecessary orthotic braces — sometimes four or five — giving kickbacks to the doctors who wrote prescriptions over the phone. Federal officials said the scam was one of the largest health care fraud schemes ever investigated, involving more than 80 search warrants in 17 federal districts. The people being charged reside all across the country, including in Florida, New Jersey, Texas, North Carolina, South Carolina, California and New York. Officials said the illegal profits were laundered through international shell companies to buy exotic cars, yachts and luxury real estate worldwide.”1 Officials say these types of scams are not uncommon. However, this one was “particularly alarming” because of the fact that it involved people all over this...