Medical Scam Funded ‘Putin’s Palace’

Sergei Karpukhin/Reuters

According to a Reuters investigation, millions of dollars ($48 million to be exact) were funneled by wealthy business associates of Vladimir Putin to a luxury property on the Black Sea that has become known as “Putin’s Palace.” The millions of dollars came from a high-profile scam from 2005 to 2010, in which medical suppliers were making millions by gouging hospitals as part of a health-care improvement program set up by Putin. A total of 104 people were charged in the investigations, except for the two associates of Putin. Those two not only were not charged, but also sent $84 million of the proceeds to Swiss banks as well as the $48 million to the palace. Putin has denied owning the luxury property.