January 1, Queens Pair Nabbed in Huge Medicare Swindle

Wyatt’s Take

• Two men from Queens are accused of running a $120 million Medicare scam for ten years.
• They allegedly bribed seniors to help steal money from government health programs.
• The scheme involved fake services and using day care centers as cover.

A pair from Queens is facing big trouble after federal charges claimed they cheated Medicare and Medicaid out of about $120 million over a decade. Court documents say they paid off seniors with cash and gift cards, then billed for prescriptions and health services that never happened.

Inwoo Kim is accused of using his pharmacy and day care centers to carry out the fraud. Daniel Lee was the program director at one of the centers and allegedly worked alongside Kim. Authorities say they bribed seniors so they’d fill prescriptions at Kim’s business, then used fake claims to rake in federal dollars.

“The defendants allegedly turned a pharmacy and social adult day care centers meant to help senior citizens into a $120 million Medicare and Medicaid fraud scheme,” said Assistant Attorney General A. Tysen Duva.

Text messages show Kim and Lee talking about delivering illegal payments. Lee wrote, “I gave the payment,” and “I left the envelope [for a patient] with Tony [Kim].”

“The defendants charged today allegedly stole $120 million from federal health care programs by luring the elderly to their businesses with illegal cash payments,” said U.S. Attorney Joseph Nocella Jr.

The scam even went above the allowed number of people in their centers and included large cash withdrawals from bank accounts to keep the scheme going.

“Schemes like this, which allegedly drained more than $120 million from Medicare and Medicaid, erode trust in our health care system,” said Scott J. Lampert from HHS-OIG.

The case was cracked open by the FBI and other federal agencies. Multiple search warrants and bank account seizures led to the arrests.

“Scheming against programs like Medicare impacts those who need it most. Together with our partners, the FBI will continue to hold accountable criminals who threaten access to critical care,” said FBI Acting Assistant Director Gregory Heeb.

Special Agent Harry T. Chavis Jr. called the plan an “elaborate scheme filled with bribery, kickbacks, and good old-fashioned deception.” Kim and Lee now face up to ten years in prison if found guilty.

“Medicaid fraud threatens the health and safety of beneficiaries, wastes taxpayer dollars, and drains essential resources from the health care delivery system,” said Acting Medicaid Inspector Frank T. Walsh Jr.

Wyatt Matters

Hardworking folks pay into these programs with every paycheck, expecting help when they need it. When bureaucrats and schemers rob the system blind, it’s the everyday American who gets left with the bill. Middle America deserves better than watching their money stolen under the guise of helping seniors.

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