Scottsdale Couple Pleads Guilty to $1.2 Billion Health Care Fraud

A couple in Scottsdale, Arizona, has pleaded guilty to orchestrating a health care fraud scheme that fraudulently billed health insurance plans for unnecessary medical procedures targeting terminally ill patients. Jeffrey King and Alexandra Gehrke submitted fraudulent claims totaling $1.2 billion, with nearly $960 million directed at federal health programs.

Their companies allegedly pressured medical professionals to provide wound grafts to patients who did not require them. As a result of their guilty pleas, the couple has been ordered to pay $1.2 billion in restitution, although the government has already seized $100 million in assets. They could each face up to 20 years in prison following sentencing at a future date.