CHICAGO – The cost of ripping off America’s healthcare system just got a whole lot steeper. U.S. Attorney Andrew S. Boutros for the Northern District of Illinois has launched a dedicated Healthcare Fraud Section within the Office’s Criminal Division, signaling a major escalation in the fight against schemes draining billions from federal and private insurers. This is a first for the office, a clear indication of the severity of the problem and the commitment to tackling it head-on.
The new section, boasting six federal prosecutors, will be spearheaded by Heidi Manschreck as Section Chief and Prashant Kolluri as Deputy Chief – both seasoned veterans in healthcare fraud investigations. Joining them are Assistant U.S. Attorneys Erin Kelly, Kate McClelland, Alejandro G. Ortega, and Kristin Pinkston, all assigned full-time to dismantle fraudulent operations. This isn’t meant to replace existing efforts; the section will work alongside the Healthcare Fraud Strike Force, a component of the Department of Justice’s Fraud Section already operating out of the Chicago U.S. Attorney’s Office, led by Assistant Chief Patrick M. Mott.
The scope of the new Section’s work is broad, encompassing everything from complex transnational criminal organizations submitting false claims to simpler, yet equally damaging, schemes like upcoding, unbundling, and illegal kickbacks. Providers and individuals targeting Medicare and Medicaid are squarely in the crosshairs, as are those engaged in fraudulent billing practices. According to U.S. Attorney Boutros, his office has already charged schemes totaling nearly $2 billion since he took office, with alleged criminal conduct spanning the country and even reaching overseas.
“Every year, healthcare fraud causes billions of dollars in losses to the federal government and private insurers and siphons off hard-earned tax dollars meant to provide care for people in need,” Boutros stated bluntly. “This isn’t just about money; it’s about exploitation. We’re talking about unnecessary and unsafe medical tests and procedures inflicted on vulnerable patients.” The creation of the dedicated section is intended to bring “greater focus, efficiency, and impact” to these investigations, ensuring those responsible are held accountable.
Boutros emphasized the continued collaboration with the existing Healthcare Fraud Strike Force and the Health Care Fraud Unit of the Department of Justice’s Criminal Division’s Fraud Section. This partnership, active since 2007 and currently operating in 27 federal districts with nine strike forces, has already charged over 5,800 defendants. The Chicago office is clearly signaling its intent to remain a central player in this national effort.
The U.S. Attorney’s Office also acknowledged the crucial support of its investigative partners, including the FBI, DEA, U.S. Department of Health and Human Services Office of Inspector General, U.S. Department of Labor’s Office of Inspector General, U.S. Food and Drug Administration, and U.S. Postal Inspection Service, as well as various state and local agencies. The message is clear: a coordinated, multi-agency approach will be employed to dismantle these schemes and protect both the healthcare system and its patients.”
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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