An Israeli citizen living in Los Angeles, Oren David Shahar, 59, was arrested in the United States and indicted in what prosecutors say was a roughly $27 million Medicare fraud scheme. According to the indictment, he used the identities of dead people to submit false claims for hospice services that were never provided.
Authorities said the arrest was part of a broad federal crackdown announced by U.S. Attorney General Todd Blanche. Hundreds of suspects were charged nationwide in health care fraud cases, and investigators said the total fraud examined this year exceeds $6.5 billion.
Prosecutors allege Shahar controlled four hospice facilities in the Los Angeles area, which were used to bill for patients who were not terminally ill and in some cases were already deceased. The illicit money was allegedly moved into accounts he controlled and spent on luxury items. Among the purchases cited was a $15,000 payment from one hospice toward the lease down payment on a Rolls-Royce Phantom valued at about $530,000.
The indictment also says Shahar paid funeral home employees for personal information about the deceased, with payments of $1,000 to $3,000 per identity. That information was then used to file fraudulent claims with Medicare. Shahar was charged along with Abraham Shin, 66, and Ginny Choi, 57, in a 16-count indictment, and all three are expected to appear in federal court in Los Angeles. Federal prosecutors said they will keep targeting health care fraud, with U.S. Attorney Bill Essayli warning that public health programs are meant to help seniors and the sick, not enrich criminals, and saying, "We will find you, arrest you and seek long prison terms."
