Telemedicine operator charged in $784M fraud scheme
A Newark, N.J. grand jury charged a Florida telemedicine company owner of filing $784 million in false and fraudulent Medicare claims, according to federal prosecutors.
Creaghan Harry, 53, was charged with one count of conspiracy to commit healthcare fraud and wire fraud and four counts of income tax evasion, according to a news release by the U.S. Department of Justice on Tuesday.
Harry and his alleged co-conspirators, Lester Stockett and Elliot Loewenstern, paid physicians to write orders for braces and medications, which were given to medical equipment suppliers for bribes and kickbacks, federal prosecutors said.
The orders added up to over $784 million in fraudulent claims, of which Medicare paid $247 million.
Harry had suppliers pay shell companies instead of his telemedicine companies. He then transferred the money from the shell company to his telemedicine companies to bribe physicians, according to the indictment.
Harry is also accused of committing income tax evasion between 2015 and 2018.
He may serve up to 60 years in prison if indicted. He faces the maximum penalty for healthcare fraud and conspiracy to commit money laundering, which is 20 years each. He also five years inn prison for tax evasion, five years for conspiray to defraud the U.S. and receive kickbacks, and 10 years for each count of receipt of kickbacks.