News Summary
Federal prosecutors have charged 11 individuals in a massive Medicare fraud scheme amounting to $41 million. The organization, allegedly including those from Eastern Europe, exploited the healthcare system by submitting fake claims and stealing personal information from over a million Americans. Among the charges is Kevin Valdhans, who allegedly billed Medicare for unrequested catheters. Another individual, Oleg Beretsky, faces charges for directing patients in exchange for kickbacks. This extensive investigation reveals the significant resources lost due to healthcare fraud.
New York – Federal prosecutors in Brooklyn have charged 11 individuals in connection with a massive Medicare fraud scheme that is being hailed as one of the largest in history, involving an astounding total of $41 million in fraudulent claims. The investigation has revealed intricate details about a criminal organization that exploited the healthcare system to obtain taxpayer dollars under false pretenses.
Among those charged is Kevin Valdhans, the owner of G&I Ortho Supply located in Gravesend, New York. Reports indicate that Valdhans and his associates allegedly engaged in deceitful practices, such as collecting payments for catheters that were never requested by Medicare members. Notably, Valdhans was tied to over $7 million in catheter billing in just a one-week span.
The indictments suggest a broader criminal enterprise, indicating that Valdhans and his group had acquired over 30 genuine companies to facilitate these fraudulent activities. Furthermore, the organization is believed to have connections to Eastern European leadership, specifically linked to regions associated with “Russia and elsewhere.” Among the 11 individuals charged, eight are reportedly citizens of Estonia, with Valdhans being from the Czech Republic and one individual a U.S. citizen.
The scale of the fraud is staggering, with investigators stating that the group managed to steal identities and personal information from more than 1 million Americans. In total, the organization submitted a staggering $10 billion in fake Medicare claims and successfully received $41 million from Medicare along with an additional $900 million from Medicare Supplemental Insurers. The operation reportedly remained active until September 2024.
In a related investigation, another medical supply shop based in Queens has been mentioned in connection with Medicare fraud; however, specific details regarding this business have not been disclosed in the current indictment. There have been claims submitted from this business in recent times, with one individual involved indicating that he learned about fraudulent complaints after having sold his company.
Additionally, Oleg Beretsky, based in Naples, Florida, has been arrested on charges related to healthcare fraud, including conspiracy and money laundering. Beretsky, who owns Obest Inc., is accused of directing elderly Medicare patients towards healthcare providers in exchange for kickbacks. Allegations state that Beretsky procured patient information through an employee from a nonprofit organization that assists senior citizens, and he allegedly pressured patients to exclusively utilize providers who compensated him with kickbacks, even employing threats against some patients.
The fraudulent activities attributed to Beretsky and his associates have been linked to over $22 million in false Medicare claims, with more than $12.4 million already paid out. Beretsky has been charged under the federal Anti-Kickback Statute and faces a maximum prison sentence of 20 years if convicted.
This extensive investigation underscores the ongoing efforts by federal prosecutors to combat healthcare fraud that siphons off valuable resources from Medicare, a program vital to the health of millions of Americans. The developments in this case are sheer indicators of the larger issue of fraud permeating the healthcare system, which not only affects financial resources but also undermines the integrity of essential health services.
Deeper Dive: News & Info About This Topic
- CBS News: Medicare Fraud Bust
- CBS News: Major Medicare Fraud Bust
- Fierce Healthcare: Healthcare Fraud Scheme
- Wikipedia: Medicare Fraud
- Encyclopedia Britannica: Health Care Fraud
