The U.S. Justice Department criminally charged 193 individuals, including 76 doctors, nurses, and other healthcare professionals who are allegedly involved in healthcare fraud schemes with $2.75 billion, the agency announced on Thursday.

The investigations, led by the Justice Department's criminal fraud unit, in collaboration with the Department of Health and Human Services Office of Inspector General, FBI, and Drug Enforcement Administration, seized over $231 million in cash, luxury vehicles, gold, and other assets during the bust operation across 32 federal districts.

The Two-Week Nationwide Bust Operation

The two-week operation caught defendants allegedly distributing millions of pills of the stimulant Adderall illegally, including $176 million related to drug and alcohol abuse treatment, and one defendant allegedly billing the federal Medicaid program for an inadequate or non-existent treatment. Attorney General Merrick Garland said that telemedicine schemes were also targeted, leading to charges against 36 defendants accused of collectively submitting more than $1.1 billion in false claims to the U.S. Medicare program.

The Justice Department would prosecute individuals who defraud Americans, steal from taxpayer-funded programs, and endanger lives for financial gain, Garland warned during a press conference.

Healthcare Fraud Scheme Triggered by Stimulants' Shortages

In one scheme, federal prosecutors charged seven individuals linked to the San Francisco-based telehealth startup Done Global with illegally distributing Adderall, a stimulant prescribed for ADHD.

Authorities busted Done, facilitating the issuance of over 40 million pills, including Adderall for ADHD treatment, through social media channels aimed at attracting drug seekers who paid monthly subscription fees for convenient access. The U.S. Department of Justice charged the founder and top doctor earlier this month for orchestrating a fraudulent $100 million scheme to distribute Adderall and other stimulants online, Reuters reported.

U.S. officials suggested that fraud schemes could have contributed to the widely reported shortages of Adderall in recent years.

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Attorney General Merrick Garland stated that the defendants exploited the COVID-19 pandemic to execute a $100 million scheme, defrauding taxpayers and providing illicit access to Adderall and other stimulants without legitimate medical justification.

Officials stated that they have increasingly used data analytics to detect fraud schemes that endanger patients or result in financial losses for the U.S. government.

Holding All Individuals Profiting from Illegal Distribution of Drugs Accountable

As part of the nationwide healthcare fraud scheme bust, a United States Attorney also announced charges against a Logan County physician and Kentucky travel nurse for unlawfully distributing and obtaining drugs. According to the U.S. Attorney's Office for the Southern District of West Virginia, the two allegedly abused their positions as medical professionals by prescribing drugs without legitimate medical necessity and obtaining drugs for personal use, Eyewitness News reported. 

Regardless of whether they are involved in drug cartels, corporate entities, or employed as medical professionals in healthcare companies, individuals who profit from the illegal distribution of controlled substances will face accountability, Garland further warned.

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