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Doctors Indicted For Alleged Medicare Fraud

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Sep 24, 2008 10:14 pm US/Pacific

Doctors Indicted For Alleged Medicare Fraud

Reporting
David Begnaud

CARMICHAEL (CBS13) ―

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Seven doctors have been implicated in a complex scheme to steal money from Medicare by billing unnecessary procedures to elderly people and attributing medical costs to dead patients. Authorities say part of the scheme was run out of a Sacramento-area office.

Five Southern California doctors are under investigation for fraud by federal authorities, and two more have already been indicted. A Los Angeles doctor, Emilio Cruz, allegedly agreed to let his Medicare credentials be used to set up a Carmichael office in his name and bill the government for services he never performed.

Some of the "patients" were dead, according to federal investigators.

When the doctor was there, hired runners would allegedly drive groups of elderly people to the Carmichael office so they could be treated for illnesses they didn't have. In return, some were paid for seeing the doctor, according to authorities.

The seven doctors under investigation are accused of receiving kickbacks for letting their credentials be used, as well as for "ping ponging" patients -- sharing them and then billing Medicare together.

One doctor has been imprisoned, one is on the run and five others could face charges soon.

The investigation has been ongoing for three years.

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