‘BLOOD MONEY’

Georgia Man Charged in Fraudulent COVID-19 Testing Scheme

Prosecutors said he accepted kickback payments from companies in exchange for “medically unnecessary tests” to cash in on Medicare reimbursements.

A Georgia man was arrested on Monday for his role in a massive scheme that sought to cash in on Medicare reimbursements by accepting kickback payments from medical companies in exchange for “medically unnecessary tests” of people who were unlikely to have COVID-19. Federal prosecutors charged Erik Santos, 49, with one count of conspiring to violate the Anti-Kickback Statute and one count of conspiring to commit healthcare fraud by “submitting fraudulent testing claims.” Prosecutors said Santos sought to monetize the coronavirus pandemic and pointed to a March 19 call in which he said: “While there are people going through what they are going through, you can either go bankrupt or you can prosper.” According to the U.S. Attorney’s Office in New Jersey, his scheme “aimed to submit more than $1.1 million in fraudulent claims to Medicare.”

FBI Special Agent Gregory Ehrie said Santos’ “profiteering is akin to receiving blood money.” He specifically preyed on “Medicare beneficiaries who were not exhibiting symptoms of COVID-19 or were otherwise unlikely to test positive for the virus,” according to court documents.