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These columns list arrests and not convictions, unless otherwise stated. Anyone listed here who is later found not guilty or has had the charges against them dropped is welcome to inform this newspaper. The information will be confirmed and printed.

JUSTICE DEPARTMENT

Valley residents charged in national health care fraud ‘takedown’

Locals charged live in Phoenix, Scottsdale, Mesa, Peoria and Surprise

PHOENIX – Several Valley residents face charges along with more than 300 others throughout the country in what the U.S. Department of Justice said was a “national health care fraud takedown.”

Valley residents charged live in Mesa, Phoenix, Scottsdale, Surprise and Peoria, according to a release from the Arizona District of the U.S. Attorney’s Office.

Law enforcement seized more than $245 million in cash, luxury vehicles, cryptocurrency and other assets as prosecutors warned of a growing push by transnational criminal networks to exploit the U.S. health care system.

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JUSTICE DEPARTMENT

Valley residents charged in national health care fraud ‘takedown’

Locals charged live in Phoenix, Scottsdale, Mesa, Peoria and Surprise

Posted

PHOENIX – Several Valley residents face charges along with more than 300 others throughout the country in what the U.S. Department of Justice said was a “national health care fraud takedown.”

Valley residents charged live in Mesa, Phoenix, Scottsdale, Surprise and Peoria, according to a release from the Arizona District of the U.S. Attorney’s Office.

Law enforcement seized more than $245 million in cash, luxury vehicles, cryptocurrency and other assets as prosecutors warned of a growing push by transnational criminal networks to exploit the U.S. health care system.

As part of the sweeping crackdown, officials identified perpetrators based in Russia, Eastern Europe, Pakistan and other countries.

“These criminals didn’t just steal someone else’s money. They stole from you,” Matthew Galeotti, who leads the Justice Department’s criminal division, told reporters Monday.

“Every fraudulent claim, every fake billing, every kickback scheme represents money taken directly from the pockets of American taxpayers who fund these essential programs through their hard work and sacrifice.”

The alleged $14.6 billion in fraud is more than twice the previous record in the Justice Department’s annual health care fraud crackdown.

It includes nearly 190 federal cases and more than 90 state cases that have been charged or unsealed since June 9. Nearly 100 licensed medical professionals were charged, including 25 doctors, and the government reported $2.9 billion in actual losses.

According to the Arizona district release, Valley residents charged include:

Cle’Esther Davenport, 51, of Peoria was charged by indictment with conspiracy to defraud the United States and receive and pay kickbacks, and receiving kickbacks, in connection with a substance abuse treatment scheme.

Ira Denny, 56, of Surprise was charged by information with conspiracy to commit health care fraud in connection with a scheme to defraud Medicare by billing for medically unnecessary amniotic allografts that were procured through kickbacks and bribes.

Tyler Kontos, 29, of Mesa, Joel “Max” Kupetz, 36, of Scottsdale and Jorge Kinds, 49, of Phoenix were charged by indictment with conspiracy to commit health care fraud, health care fraud and conspiracy to defraud the United States in connection with a $1 billion amniotic wound allograft fraud scheme.

Gina Palacios, 40, of Phoenix was charged by information with conspiracy to commit health care fraud in connection with a scheme to defraud Medicare by billing for medically unnecessary amniotic allografts that were procured through kickbacks and bribes.

Farrukh Jarar Ali, 41, of Pakistan, was charged by indictment with conspiracy to commit health care fraud and wire fraud, three counts of wire fraud and money laundering in connection with an alleged $650 million scheme involving at least 41 substance abuse treatment clinics in Arizona.

The Associated Press contributed to this report.

We’d like to invite our readers to submit their civil comments on this issue. Email AZOpinions@iniusa.org.

 

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