Illinois Brothers Indicted for $300 Million COVID-19 Health Care Fraud Scheme

Two Illinois brothers have been indicted on charges of defrauding Medicare, Medicaid, and private insurers of nearly $300 million through fraudulent COVID-19 laboratory testing claims. The scheme involved submitting claims for tests that were never conducted, leading to at least $65 million in improper reimbursements. Authorities allege the defendants controlled multiple clinical laboratories, sometimes through straw owners, across Illinois and California. In addition to health care fraud, the indictment charges the brothers with money laundering, involving transferring illicit funds to invest in luxury real estate, vehicles, and other assets. Each defendant faces multiple counts of health care fraud and money laundering, with potential sentences of up to 10 years per fraud charge and 20 years for money laundering. This case highlights ongoing efforts by the Department of Justice and health agencies to combat large-scale financial crimes affecting public health programs, which increase costs for taxpayers and insurance systems. The investigation is conducted by the FBI and the Department of Health and Human Services Office of Inspector General, reinforcing enforcement against health care fraud within federal programs and private insurance markets. The Criminal Division's Health Care Fraud Strike Force Program continues to address substantial fraud, with more than 5,800 defendants charged since 2007 related to billions in fraudulent billings, emphasizing regulatory vigilance and compliance enforcement in health care payments.