In this year’s nationwide healthcare fraud enforcement action in the United States, 193 individuals have been criminally charged for false claims, involving over $2.75 billion. Among them, two Chinese individuals were arrested and charged by federal prosecutors in the Eastern District of New York and New Jersey.
In one specific case, 42-year-old Feng Jiang, residing in Oakland Gardens, Queens, was indicted on the 26th for an alleged $24 million scheme conducted across multiple pharmacies in New York. The charges against Jiang include conspiracy to commit healthcare fraud, defrauding the U.S. government, illegal medical kickbacks, and money laundering.
The indictment alleges that Jiang and his accomplices paid kickbacks to beneficiaries of Medicare and Medicaid by issuing unnecessary prescriptions for red and blue cards in the form of supermarket vouchers and cash.
Furthermore, the indictment accuses Jiang and others of issuing checks to multiple “trade companies” for cash, which was distributed among pharmacy owners as profits and used for illegal kickbacks and bribes.
In another case, 39-year-old Hyunji Choi, also known as Regina Choi, residing in Woodside, New York, was charged by federal prosecutors in New Jersey with conspiracy to commit healthcare fraud concerning the Amtrak healthcare plan.
According to the allegations, Choi, a medical billing clerk, submitted false and fraudulent reimbursement claims to the Amtrak healthcare plan without providing services, resulting in nearly $960,000 in losses for Amtrak. She also allegedly paid cash bribes and kickbacks to colluding Amtrak employees.
During this coordinated federal crackdown on Medicare fraud, federal prosecutors in the Eastern District of New York arrested 11 individuals, with criminal charges brought against 9 of them. Simultaneously, in New Jersey, 13 individuals are facing criminal charges for fraud involving Medicare, Medicaid, TRICARE, and private health insurance companies. Across 32 federal districts, the government seized over $231 million in cash, luxury vehicles, gold, and other assets.
U.S. Attorney General Merrick Garland emphasized, “Whether you are a drug trafficker, a healthcare industry executive, or a medical professional, if you profit from illicitly distributing controlled substances, you will be held accountable.” He stated that the Department of Justice will relentlessly pursue those who deceive the American public, steal taxpayer funds, and endanger the safety of people’s lives.
Federal prosecutor Breon Peace of the Eastern District of New York stated that these defendants treated healthcare insurance and Medicaid as their personal ATMs, diverting public funds into private pockets. Ivan J. Arvelo, the head of Homeland Security Investigations (HSI) in New York, pointed out that these 9 defendants in New York unlawfully obtained up to $7.1 million, abusing their positions and violating narcotics regulations and healthcare practice standards.