Dirty Laundry

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Everyone has ”dirty laundry” that they would prefer others not to know about. I’m not talking about grass stains on your whites, but secrets that need to stay ”in the vault” so to speak. An article in eNews Park Forest discusses how two Fla., men are probably wishing their money laundering scheme had stayed in the hamper instead of being exposed by the Medicare Strike Force.

The story reports that the two co-conspirators were part of a health care fraud scheme that bilked Medicare of more than $6 million from fraudulent claims associated with an outpatient physical therapy center. (Over nearly two years, the men submitted more than $10 million in fraudulent claims to the benefits program.)

Before it was determined that the therapy services were not legitimately prescribed by doctors nor performed on beneficiaries, the Medicare payments were deposited into the physical therapy company’s bank account. From there the money flowed to multiple people and other entities that served as shell companies.

The 43-year-old and 36-year-old both pleaded guilty to conspiracy to commit money laundering involving financial proceeds from a health care fraud scheme. They were each sentenced to 46 months and 37 months respectively in prison, then three years of supervised release. The criminals are also required to pay $1.8 million in restitution, jointly and severally with their co-conspirators.

Thanks to the Medicare Strike Force, there’s no hiding these men’s dirty laundry scheme anymore. While serving out their sentence, who knows – maybe these two may actually get to work in the prison’s laundry department. They’ll be laundering something different this time – mostly orange jump suits.

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Convicted Money Launderers Sentenced to Prison in Connection with Health Care Fraud Scheme,” published by eNews Park Forest on May 22, 2014.

Two Florida men were sentenced today in the Middle District of Florida for their roles in a fraud scheme involving the submission of more than $10 million in fraudulent claims to Medicare for physical therapy.

Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida A. Lee Bentley III, Acting Special Agent in Charge Brian P. Martens of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region, and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.