Crime & Law

Feds Launch New Unit to Prosecute Health Care Fraud Cases in Illinois

Chicago’s top federal prosecutor is launching a new unit within his office that aims to tackle health care fraud schemes, which he said result in billions of dollars in losses each year.

U.S. Attorney Andrew Boutros announced Friday the creation of a new section within the Northern District of Illinois’s Criminal Division that will be dedicated to the prosecution of health care fraud.

“Since becoming U.S. Attorney, my office has charged nearly $2 billion in health care fraud schemes involving alleged criminal conduct that has stretched across the country, and even transnationally,” he said in a statement. “The newly created Healthcare Fraud Section that I’ve launched will bring greater focus, efficiency, and impact to our efforts in this important program area, which often involves the exploitation of patients through unnecessary and/or unsafe medical tests and procedures.”

The new section will consist of six prosecutors who will be assigned to handle various fraud schemes — including false and fraudulent claim submissions made to health insurance companies; upcoding and unbundling schemes; scams targeting Medicare and Medicaid; fraudulent billing; and illegal kickbacks.

The announcement comes weeks after federal prosecutors across the country launched an “unprecedented” fraud takedown that resulted in charges filed against 320 people nationwide for allegedly participating in various health care fraud schemes that totaled more than $14.6 billion in intended losses.

As a result of those investigations, the federal government has seized more than $245 million in cash, luxury vehicles, cryptocurrency and other assets.

That included new charges filed against Anosh Ahmed, the former Loretto Hospital exec who reportedly fled to Dubai after he was charged last year in a $15 million embezzlement scheme.

Ahmed was hit with new charges in July along with three others accused of submitting fraudulent reimbursement claims to the federal government for COVID-19 testing materials totaling nearly $900 million, of which nearly $300 million was paid.

The new health care unit will be led by section chief Heidi Manschreck and deputy chief Prashant Kolluri, who collectively have dozens of years of experience investigating and prosecuting health care fraud cases, Boutros said.

“Healthcare providers, gatekeepers, and others who criminally cheat the system will be vigorously investigated, prosecuted, and punished under federal law and pursuant to the Department’s priorities,” he said in a statement.

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