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Medicare Fraud Scheme Traded Spa Treatments, Other Goodies for Personal Info—11/02/11

Seventeen arrests were made on November 2nd in clinics based in Brooklyn and Queens. These health clinics allegedly defrauded the Government of $95 million in Medicare dollars. The fraud scheme namely involved trading free spa treatments, dance lessons, and other freebies for personal information provided by Medicare beneficiaries. In addition, the clinics never performed procedures that were billed to Medicare and gave cash kickbacks to patients to undergo unnecessary treatments and tests.

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