Arizona Couple Admits to $1.2 Billion Medicare Fraud Scheme Involving Unnecessary Wound Grafts (Department of Justice)

Arizona Couple Admits to $1.2 Billion Medicare Fraud Scheme Involving Unnecessary Wound Grafts

Tuesday, February 4th, 2025 Fraud Legislation & Regulation Life & Health Litigation

An Arizona couple, Alexandra Gehrke and Jeffrey King, pleaded guilty to their roles in a massive health care fraud scheme that resulted in over $1.2 billion in false insurance claims. Through their companies, Apex Medical LLC and Viking Medical Consultants LLC, they arranged for untrained sales representatives to push expensive wound grafts onto elderly and terminally ill patients, often without medical necessity. Gehrke and King directed nurse practitioners to apply these grafts, overriding medical judgment, which led to unnecessary and ineffective treatments. Their fraudulent claims targeted Medicare, TRICARE, CHAMPVA, and private insurers, with payouts totaling over $614 million.

As part of their plea agreements, Gehrke and King agreed to pay restitution amounts exceeding $600 million each and to forfeit over $410 million in illicitly obtained assets. Authorities have already seized nearly $100 million, including luxury vehicles, life insurance annuities, and bank account funds. Both face up to 20 years in prison, with Gehrke’s sentencing set for February 11, while King’s sentencing date remains unscheduled.

This case is part of the Justice Department’s broader crackdown on health care fraud, with federal agencies continuing to investigate and prosecute fraudulent activities in the medical field. The Health Care Fraud Strike Force, which has charged over 5,800 defendants since 2007, remains actively involved in combatting fraudulent billing practices that cost taxpayers billions.


External References & Further Reading
https://www.justice.gov/opa/pr/arizona-couple-pleads-guilty-12b-health-care-fraud
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