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Markovich Brothers, $112 Million Addiction Treatment Fraud, Florida 2024
Two South Florida addiction treatment facility operators, Jonathan Markovich and his brother Daniel Markovich, have been convicted of fraudulently billing approximately $112 million for services that were never provided or were medically unnecessary.
A federal jury in the Southern District of Florida convicted the brothers of conspiracy to commit health care fraud and wire fraud. Jonathan Markovich was also convicted of eight counts of health care fraud, conspiracy to pay and receive kickbacks, and two counts of paying and receiving kickbacks. Daniel Markovich was convicted of two counts of health care fraud and conspiracy to pay and receive kickbacks.
The evidence presented at trial showed that the defendants obtained patients through patient recruiters who offered illegal kickbacks to patients, and that they shuffled a core group of patients between Compass Detox and WAR to fraudulently bill for as much as possible. The defendants also ordered excessive, medically unnecessary urinalysis drug tests, and patients were given a so-called “Comfort Drink” to sedate them and keep them coming back.
The brothers were also convicted of conspiracy to commit money laundering, and Jonathan Markovich was convicted of two counts of concealment money laundering, and six counts of laundering at least $10,000 in proceeds of unlawful activities. He was also convicted of two counts of bank fraud related to his fraudulently obtaining Paycheck Protection Program (PPP) loans for both Compass Detox and WAR.
The convictions are the result of the Department’s Sober Homes Initiative, which aims to protect patients and prosecute fraudulent substance abuse treatment facilities.
According to Assistant Attorney General Kenneth A. Polite Jr., the convictions demonstrate the success of the initiative in protecting patients and prosecuting fraudulent substance abuse treatment facilities. The FBI and their law enforcement partners will investigate and criminally prosecute such fraud to the fullest extent of the law.
The defendants, Jonathan Markovich and Daniel Markovich, both of Bal Harbour, were convicted of their roles in the $112 million addiction treatment fraud scheme. They are scheduled to be sentenced on a future date.
Mandatory Facts: Defendant: Jonathan Markovich and Daniel Markovich, Exact Criminal Charges: Conspiracy to commit health care fraud and wire fraud, City and State: Bal Harbour, Florida, Exact Date: Not specified, Sentence or Outcome: Scheduled to be sentenced on a future date, Dollar Amounts: $112 million.
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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