COLUMBIA, S.C. — Officials announced indictments in a complex, one-billion dollar nationwide medicare fraud scheme.
U.S. Attorney for South Carolina Sherri Lydon made the announcement Monday along with federal law enforcement officials with the FBI, the U.S. Dept. of Health and Human Services and the IRS at the offices of Palmetto GBA.
Operation Brace Yourself, a nationwide investigation originating in South Carolina, disrupted and dismantled a nationwide medicare fraud scheme, according to Lydon. Lydon described the investigation as one of the largest medicare fraud investigations in the history of the FBI, HHS and the IRS.
Across the country, Lydon said 80 warrants had been executed in 17 federal districts, resulting in charges against 24 defendants. Lydon described the defendants as owners, managers and others associated with six telemedicine companies; owners of dozens of durable medical equipment companies; three licensed medical professionals; and others involved in the scheme.
In South Carolina, charges were announced against Andrew Camille, 43, of Mount Pleasant, and companies in which he had an ownership interest, including ten durable medical equipment companies, two drop-ship companies and two additional companies that facilitated fraud of up to $2M.
"White collar crime is not a victimless crime," Lydon said. "Ultimately, taxpayers will pay for higher healthcare premiums and out-of-pockets-costs that result from fraud on the medicare system."
Here's how the scheme worked, according to Lydon:
International call centers targeted advertising to medicare-eligible beneficiaries. After luring targets in with free and low-cost durable medical braces, officials say the call centers would then up-sell them.
International call centers allegedly paid illegal kickbacks and bribes to telemedicine companies in exchange for medical orders for medicare-eligible beneficiaries.
The telemedicine companies then allegedly paid physicians to write prescriptions for patients with whom they had no relationship without performing any tests or physical examinations.
Finally, the international call centers would sell the medical equipment orders to durable medical equipment companies, which would then fraudulently bill medicare.
Lydon said the defendants used the billion dollar proceeds to buy exotic cars, yachts and luxury real estate around the country.