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Dozens arrested for Medicare fraud in LA, Houston

by Associated Press

Posted on October 21, 2009 at 1:16 PM

LOS ANGELES -- Federal authorities have indicted more than 20 suspects, including clinic owners and patient recruiters, in a major Medicare fraud bust in Los Angeles and Houston.

Wednesday’s busts target scams that ordered power wheelchairs, hospital beds and other expensive equipment that many patients never received.

It was unclear how many suspects were arrested Wednesday. Seven were arrested last week. All are accused in a roughly sophisticated $26 million scam where patient recruiters offer patients kickbacks for using their Medicare numbers to fraudulently bilk the government program.

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