The Department of Justice’s (DOJ) National Fraud Enforcement Division announced on May 8 that it had carried out enforcement actions across the United States worth nearly $1 billion.
Salahaldeen controlled four laboratories and paid kickbacks and bribes to several purported “marketers” to induce individuals with Medicare, Medicaid, and private insurance to provide health information and DNA samples. This was used to “obtain costly genetic tests designed to predict the risk of cancer, adverse drug reactions, and other conditions,” according to the DOJ.
The DOJ stated that the marketers had “obtained fraudulent laboratory requisition forms for the tests from medical providers who had not treated or consulted with the beneficiaries, and did not use the test results in treatment. As part of the scheme, Salahaldeen falsified laboratory requisition forms, letters of medical necessity, and other medical records to make the tests appear legitimate.”
Mustafa and Salahaldeen created sham invoices, contracts, and other documents to disguise bribes and kickbacks. The four labs, two of which were controlled by Mustafa together with Salahaldeen, collectively billed roughly $522 million in fraudulent claims, out of which Medicare, Medicaid, and private insurers paid $84 million.
Joel Rufus French, 47, of Armory, Mississippi, collected the money by “selling patient information and sham doctors’ orders for orthotic braces that patients did not want or need,” the department said.
For instance, one case involved four defendants pleading guilty to participating in a conspiracy to steal $84 million in U.S. Treasury checks, two of whom were former Postal Service employees. The individuals allegedly stole thousands of envelopes containing such checks and sold them nationwide.
In another case, an individual was sentenced to 144 months in prison for stealing public benefits worth $59 million and then laundering the money to China.
Commenting on the enforcement actions against nearly $1 billion in fraud, Assistant Attorney General Colin McDonald of the National Fraud Enforcement Division said that the division “continues to grow its footprint and aggressively prosecute fraud schemes, no matter the size.”
Fraud Task Force
The DOJ announced the creation of the National Fraud Enforcement Division on April 7. According to the department, its work to combat fraud supports President Donald Trump’s March 16 executive order, “Establishing the Task Force To Eliminate Fraud.”“President Trump is restoring the integrity of taxpayer-funded safety-net programs that have been exploited by illegal aliens, criminals, foreign gangs, bureaucrats, and non-governmental organizations,” the White House said.
“The Strike Force will surge at least 10 additional federal prosecutors to the region who will work in partnership with the HHS Office of Inspector General, the Federal Bureau of Investigation, the Drug Enforcement Administration, and other law enforcement partners,” McDonald said during a press conference, referring to the Department of Health and Human Services (HHS).