Three Florida residents were recently charged in an alleged Medicare and money laundering scheme that has been referred to by the U.S. Justice Department as the “largest single criminal healthcare fraud case ever brought against individuals”. As reported by CNBC, the scheme has netted the conspirators a total sum of over $1 billion since 2009.
In an indictment that was filed July 22nd, 2016, it was revealed that Philip Esformes, owner of 30 Miami assisted living and skilled nursing facilities, as well as a hospital administrator and a physician’s assistant were charged with conspiracy, healthcare fraud, and money laundering. Esformes, 47, lived a personal lifestyle that included private jets worth $2.1 million, luxury vehicles worth $2.4 million, and watches that were worth more than $360,000 each.
Esformes and his conspirators allegedly cycled thousands of Medicare and Medicaid beneficiaries through his company, Esformes Network, despite the fact that those beneficiaries didn’t quality for such care. Unnecessary care was billed to those accounts then laundered. In the court filing, it was revealed that those beneficiaries were prescribed with—and then became addicted to—narcotics which forced the beneficiaries to remain in Esformes Network facilities.