Dozens charged in $1.2 billion health care fraud

The Justice Department on Wednesday announced charges against dozens of defendants across the U.S. in connections with over $1.2 billion in alleged health care fraud, including a telemedicine scheme that reportedly sought to cheat federally funded health care programs.

Charges were brought against a telemedicine company executive as well as owners and executives of laboratories, medical equipment companies, marketing groups and medical professionals, the department announced.

While some charges were related to medical-equipment and genetic-testing fraud, over $1 billion of the total losses came from the alleged telemedicine schemes.

In addition to the charges brought against the 36 defendants, the Centers for Medicare & Medicaid Services says it took "adverse administrative actions against 52 providers involved in similar schemes."

The federal healthcare agency said it seized more than $8 million in cash and luxury vehicles in connection with the investigation.

The telemedicine companies are accused of having medical professionals pay for expensive genetic tests and durable medical equipment, even if the patients did not need them, without interaction with the patient. The test results or the equipment often were often worthless if they were given to the patient at all.

In one case, a laboratory operator was charged in connection to a plan to pay millions in kickbacks to marketers to then pay kickbacks to telemedicine companies and call centers.

One defendant "allegedly laundered the proceeds of the fraudulent scheme through a complex network of bank accounts and entities, including to purchase luxury vehicles, a yacht, and real estate. The indictment seeks forfeiture of over $7 million in United States currency, three properties, the yacht, and a Tesla and other vehicles," the federal prosecutors also said.