The COVID-19 pandemic has had a severe impact on people's finances, and unfortunately, some individuals have taken advantage of this situation to commit fraud, resulting in millions of dollars of losses to taxpayers. The U.S. Department of Justice (DOJ) has reported that fake billing for COVID-19 medical expenses alone has resulted in $490 million in fraud.
In response to this, 18 defendants across nine federal districts have been charged by federal investigators. One of the accused is a physician named Anthony Hao Dinh, who allegedly orchestrated a $230 million fraud on the U.S. Health Resources and Services Administration (HRSA) COVID-19 Uninsured Program. Dinh was one of the top billers in the country for the program, and he used the proceeds for high-risk options trading, resulting in a loss of more than $100 million between November 2020 and February 2022.
Dinh allegedly submitted fraudulent claims for treatments of insured patients, billed for services that were not provided, and charged for services that were not medically necessary. He has been arrested and is facing a maximum of 50 years in prison for three charges, released on a $7 million bond.
Other charges include Lourdes Navarro, who was accused of causing federal agencies to lose $241 million by billing HRSA and Medicare for COVID-19 respiratory pathogen panel tests that were not ordered or medically necessary, and that were procured through illegal kickbacks and bribes. In Florida, charges were filed against a doctor and marketer for fraudulently supplying patients with over-the-counter COVID-19 tests they did not need or want, resulting in over $8.4 million in fraudulent claims to Medicare. In Louisiana, the operator of a primary care clinic and spa was charged for submitting fraudulent loan agreements to receive more than $1.1 million spent on personal expenses.
In addition, three individuals working at a midwife practice in New York were charged with distributing 2,700 forged COVID-19 vaccination cards to unvaccinated individuals, destroying vials of the vaccine, and purporting to be one of the busiest vaccination sites in the state. Two people in Utah were charged for making and selling approximately 120,000 counterfeit COVID-19 vaccination record cards across the country.
Attorney General Merrick B. Garland has emphasized that the DOJ will not tolerate those who take advantage of the pandemic for personal gain and steal taxpayer dollars. The DOJ's investigation involved multiple agencies, and the objective is to combat and prevent COVID-19-related fraud and safeguard the integrity of taxpayer-funded programs.
Source: Investigation of COVID-19 fraud tallies scams worth $490 million (medicaleconomics.com)
Source: Investigation of COVID-19 fraud tallies scams worth $490 million (medicaleconomics.com)
