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$67M Medicare Fraud Scheme Cracks Down on Hollywood Executives
Three high-ranking executives of Hollywood Pavilion LLC, a South Florida psychiatric hospital, have been sentenced to prison for their roles in a massive $67 million Medicare fraud scheme.
Karen Kallen-Zury, 60, of Lighthouse Point, Fla., was sentenced to 25 years in prison, while Daisy Miller, 44, of Hollywood, Fla., received 15 years. Christian Coloma, 50, of Miami Beach, Fla., was handed a 12-year sentence. In addition to their prison terms, Kallen-Zury and Miller will have to pay over $39 million in restitution, while Coloma will pay over $20 million.
The scheme, which lasted for nine years, involved the defendants paying bribes and kickbacks to patient brokers to obtain Medicare beneficiaries who didn’t qualify for psychiatric treatment. The hospital then submitted false and fraudulent claims to Medicare for services that weren’t provided.
“Health care fraud is a devastating crime that threatens the strength and integrity of our health care system,” said U.S. Attorney Wilfredo A. Ferrer. “As I have previously stated, we remain steadfast in our efforts to protect Medicare from fraud and abuse for those who need it – the sick, the elderly and the poor. Today’s sentencing should send a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will be brought to justice.”
The Medicare Fraud Strike Force, a multi-agency task force, investigated the case and brought charges against the defendants. The FBI and the U.S. Department of Health and Human Services Office of Inspector General also played key roles in the investigation.
The sentencing of Kallen-Zury, Miller, and Coloma is a major victory for law enforcement and a warning to those who would seek to defraud Medicare. The case highlights the importance of protecting the integrity of the healthcare system and holding those responsible for fraud accountable.
The sentencing hearing for Michele Petrie, another convicted executive of HP, is scheduled for Dec. 18, 2013.
“Bribes, kickbacks and false claims are words that have no place in America’s health care lexicon, yet the greed of these executives developed into an elaborate $67 million health care fraud scheme that involved these very terms,” said FBI Special Agent in Charge Michael B. Steinbach. “Ultimately, health care fraud robs from the elderly and disabled. The FBI and its partners will continue to pursue those individuals who pay kickbacks and fraudulently bill for medical services that are not necessary or ever provided.”
RELATED: Miami Hospital COO Pleads Guilty in $67M Mental Health Fraud
RELATED: Miami Hospital COO Pleads Guilty in $67 Million Scam
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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