Luxurious life-style ends in jail for couple who defrauded Medicare

SCOTTSDALE, Ariz. – A Scottsdale couple who lived an opulent life-style on the expense of taxpayers will now spend a number of years in federal jail.

What we all know:

Jeffrey King and Alexandra Gehrke defrauded the Medicare system in an enormous scheme, billing for “medically unnecessary wound grafts” for aged and terminally sick sufferers. Court data say the 2 submitted $1.2 billion in false and fraudulent claims to medical insurance plans, together with Medicare, by means of firms they owned and operated.

The couple pleaded responsible earlier this 12 months to conspiracy to commit well being care fraud and wire fraud.

Gehrke, who owned Apex Medical LLC, incentivized “medically untrained” gross sales representatives to search out Medicare sufferers with wounds of any measurement or severity. The couple ordered the most important attainable allografts to be positioned on the injuries, receiving a mixed $280 million in unlawful kickbacks.

Gehrke should pay practically $615 million in restitution, and King should pay barely greater than $605 million in restitution. The couple should additionally forfeit $410 million in fraudulent funds and property, together with costly properties, luxurious automobiles, jewellery and gold.

What they’re saying:

King’s youngsters, household and pals spoke on his behalf asking for mercy, speaking about his army service and the way he was an incredible dad who was once a DJ.

King was visibly emotional in courtroom, sobbing at occasions, and after the 14-year sentence was introduced, he even regarded on the prosecution, whispering, “Why?”

The choose will advocate that he be housed on the federal jail in Safford. His household and attorneys didn’t need to present a remark after courtroom was adjourned.