LOUISVILLE (WHAS11) -- It's being heralded as the largest health care fraud takedown in U.S. Department of Justice history, with around 600 individuals charged, responsible for approximately $2 billion in health care fraud.
"What health care fraud is at the end of the day, at its base level, is it's theft and it's drug dealing," U.S. Attorney Russell Coleman said.
Among the hundreds charged are 10 people from the Western District of Kentucky, including six from Jefferson County, accused of participating in health care fraud schemes.
"These 10 individuals include a psychiatrist, a chiropractor, a general practitioner, a medical assistant, a number of individuals that work in and around medical practices, and a couple, as you'll see, just flat out fraudsters," Coleman said.
Officials said health care fraud is not only about the monetary damages, which saw some of those charged receiving hundreds of thousands of dollars of fraudulent proceeds, but the crackdown is also about public safety. Several face charges of unlawfully dispensing controlled substances, including Dr. Peter Steiner, a psychiatrist who operated Kentuckiana Mental Health Associates, who is accused of prescribing unnecessary drugs.
"He prescribed thousands of units of stimulants, of buprenorphine," Coleman said. "He also unlawfully distributed opiates to include fentanyl."
"That next generation at threat of addiction isn't likely to become addicted to something on the streets," Attorney General Andy Beshear, D.-Kentucky, said. "They're likely to become addicted to something in the medicine cabinet."
Dr. Chandra Reddy and his wife Vinodini Reddy were charged with two counts conspiracy to commit health care fraud and one count of conspiracy for making false statements. The U.S. Attorney's Office said Dr. Reddy was also charged with allowing his nurse practitioners to use his DEA number to prescribe controlled substances.
Monica Berry, a medical assistant in Dr. Reddy's office, and Brandon Gordon, a patient, were charged with one count of conspiracy to unlawfully distribute controlled substances, three counts of conspiracy to commit health care fraud and three counts of aggravated identity theft. The U.S. Attorney's Office said Berry used Dr. Reddy's DEA number to prescribe drugs that Gordon would then sell on the street. Officials said the defendants moved around 17,750 units of Hydrocodone, 2,580 units of oxycodone, 1,895 units of Xanax, 210 units of Ambien, 570 units of Phentermine and 600 units of Soma.
Yesdel Acosta and Eduardo Chinea-Martinez were charged with one count of conspiracy to commit health care fraud, 16 counts of health care fraud, 13 counts of theft from a health care benefit program, 13 counts aggravated identity theft, 10 counts of money laundering and four counts of mail fraud. Officials said the defendants operated three false-front medical clinics and stole the identities of five physicians, four of whom were from Kentucky, and many patients to bill for services never renders, receiving $258,000 in false medical billings.
Osmaro Ruiz was charged with one count of conspiracy to commit health care fraud, seven counts of health care fraud, seven counts aggravated identity theft and 10 counts of money laundering. Officials said Ruiz operated a false-front pharmacy where he stole and used the identities of patients and doctors to bill for prescriptions that patients never received, resulting in approximately $858,000 being paid out in fraudulent proceeds.
Dr. Peter Steiner was charged with multiple counts for unlawfully distributing controlled substances. Officials said Steiner, as the operator of Kentuckiana Mental Health Associates, prescribed medically unnecessary drugs, also prescribing drugs outside professional practice. He also prescribed thousands of units of stimulants and Buprenorphine, according to Coleman, along with unlawfully distributing opiates.
Dr. Bingston Crosby and Lacy Black were charged with one count of conspiracy to commit health care fraud and each one count of paying or offering health care kickbacks. Officials said Crosby, a chiropractor, and operator of Crosby Chiropractic Center, Inc., paid Black, his runner/marketer, to recruit Kentucky Medicaid and private auto insurance patients to treat at his clinic. Black would promise the patients payment to receive treatment at the clinic, according to the U.S. Attorney's Office, and Crosby billed for services that were not performed when he added charges of treatments that were not given. Crosby also faces eight counts of health care fraud, seven counts of money laundering and seven counts of mail fraud.
According to Coleman, law enforcement has also executed multiple search warrants over the past few weeks related to possible health care fraud and opiate overprescribing, including at a residence, an oncologist's practice and several pain clinics. Coleman would not reveal specifically which practices or doctors were involved in these searches but said more charges are expected to come from the investigation.