Feds charge 21 people over COVID-19 related fraud schemes totaling $150 million

The Department of Justice announced on Wednesday charges against 21 individuals that allegedly ran covid-19 related scams and sought to defraud the government health care programs of $149 million. 

The charges are part of an effort by the Justice Department to “rooting out schemes that have exploited the pandemic,” according to Kenneth Polite, assistant attorney general for the criminal division. So far, there have been nine separate federal court cases.

“Throughout the pandemic, we have seen trusted medical professionals orchestrate and carry out egregious crimes against their patients all for financial gain,” said Luis Quesada, assistant director of the FBI’s Criminal Investigative Division.

To find the alleged scammers, investigators used data analytics to identify patterns that pointed to fraud, law enforcement officials said. 

"The scale and complexity of the schemes prosecuted today illustrates the success of our unprecedented interagency effort to quickly investigate and prosecute those who abuse our critical health care programs," said Kevin Chambers, director of Covid-19 Fraud Enforcement.

Some schemes included selling fake vaccination cards, misappropriating funds for frontline medical providers, and creating fake testing centers to report false claims to federal medical services, reported CBS News.  

One of the largest schemes found involved two people who owned a clinical laboratory in California that made $144 million by submitting false health claims for Covid-19 tests to federal programs. The profits were then laundered through shell companies and were used to buy “real estate, luxury items, and personal goods and services.”

The two individuals charged, Imran Shams and Lourdes Navarro, are being accused of healthcare fraud conspiracy, money laundering, and seeking to pay kickbacks. 

“The indictment also alleges that Shams and Navarro paid kickbacks to marketers who obtained specimens and test orders, and laundered the proceeds of the scheme through shell companies Navarro controlled, including by making expenditures on real estate, luxury items, and personal goods and services,” the Justice Department said.

Another case includes a Colorado resident who allegedly manufactured and sold fake Covid-19 vaccination cards in dozens of states, including Olympian athletes and their coach who went to the Tokyo Olympics last year. Robert Van Camp was charged with trafficking in counterfeit goods and conspiracy to defraud the U.S.

Investigators even found that people were committing fraud before the pandemic," a Justice Department official said.

“These health care fraud abuses erode the integrity and trust patients have with those in the health care industry, particularly during a vulnerable and worrisome time for many individuals,” said Quesada.