A citizen who resides in Florida and owns various telemedicine companies in the U.S. was summoned last week by the Department of Justice (DOJ). This was about his assumed role with a massive healthcare fraud that involved a large amount of money worth $784 Million in false health care claims to Medicare.
Creaghan Harry, the 53-year-old owner of telemedicine companies, has been accused of one count of wire fraud and a scheme to carry out medical care fraud. In addition, according to DOJ statements, he was charged with income tax evasion (four counts), which made him possible to live an extravagant lifestyle. The U.S Department of Justice also claimed that this case is one of the massive Medicare fraud conspiracies ever charged.
Harry was formerly charged together with his co-conspirators Elliot Loewenstern and Lester Stockett with conspiracy to deceive the United States (one count), receiving kickbacks (four counts), and laundering money charges (one count). Both Loewenstern and Stockett have been found guilty of the charges.
Furthermore, solicitation of illegal payments and bribes from marketers and suppliers of DME or durable medical equipment in trade for DME medication and braces was the most recent charge that Harry and other accused have faced.
According to the DOJ, the telemedicine companies of Harry allegedly paid doctors to place needless medical orders and were charged to Medicare amounting to $740 million. Based on the total amount charged, Medicare has been defrauded of approximately $247 million.
Harry allegedly appointed DME suppliers to direct the payments through international, and shell companies which straw owners operated; these are hired people to be the front owners of legal companies for someone else, which is Harry’s plan. This scheme was to cover up Harry’s track.
Moreover, the payments will be transferred by Harry to his telemedicine companies under his name. And the collected money was used as payment for doctors to transact the needless orders.
Harry allegedly reported over $10 million each year was the service fees paid by patients to receive the services of his telemedicine companies which was the revenue from his illegal bribes and kickbacks. It means that Harry has issued false statements to lawyers and prospective investors about where his income came from.
The DOJ also accused Harry of being involved with tax evasion between 2015 and the year 2018. This case is in addition to his conspiracy to carry out wire fraud and health care scams. They also found out that the payments transferred to companies of Shell were not mentioned on any of his tax returns but instead were used to finance his extravagant lifestyle.
If convicted, Harry will face imprisonment of up to 20 years due to conspiracy to enact wire fraud and health care swindling. Not only that, but he may also face another five years because of trying to rob the United States, ten years for every count of receiving kickbacks, and 20 years for money laundering.