PORTLAND, Ore.—A Springfield woman has been locked up for 21 months after she was caught swindling millions from health insurance companies and dodging taxes.
Saffron Gustafson, 43, the owner of several medical equipment stores across Oregon, was sentenced on September 2, 2020. She pleaded guilty to defrauding six health insurance plans out of $1.3 million and evading nearly $100,000 in federal income taxes.
Gustafson’s scheme involved inflating bills for custom compression garments by up to 600% and fabricating invoices to support the false claims. Her stores, Saffron’s Specialized Medical, were located in Portland, Springfield, Salem, and Vancouver, Washington.
The U.S. Attorney Billy J. Williams emphasized the impact of such fraud on the healthcare system: “Health care fraud affects all Americans by increasing insurance costs and reducing legitimate claim payments.”
IRS-Criminal Investigation Special Agent Justin Campbell highlighted the broader significance of tax evasion: “Tax evasion impacts every American, which is why it’s a top priority for IRS-Criminal Investigation special agents.”
The investigation was a collaborative effort by multiple federal agencies, including the FBI, IRS-Criminal Investigation, the U.S. Department of Health and Human Services, and the Washington State Office of the Insurance Commissioner.
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Key Facts
- State: Oregon
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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