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Sunday, April 19, 2015


Thursday, April 16, 2015

Valencia, California, Doctor Indicted in $6.5 Million Medicare Fraud Scheme
An indictment was unsealed today charging a doctor from Valencia, California, with operating a $6.5 million scheme to defraud the Medicare program by billing Medicare for medical services that were not actually provided.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division and Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Region made the announcement.

Gary J. Ordog, 60, of Valencia, California, was indicted by a federal grand jury in the Central District of California on March 27, 2015, for nine counts of health care fraud.  The indictment alleges that Ordog billed Medicare for services that were not actually provided to the Medicare beneficiaries.

According to allegations in the indictment, Ordog was a physician who purportedly assisted beneficiaries with various toxicological symptoms, including those related to mold and chemical exposures.  Ordog would allegedly see a beneficiary at least once in connection with the potential evaluation and management of his or her conditions.  Subsequently, often several years after the last time he saw a particular beneficiary, Ordog would allegedly submit false claims to Medicare for purported additional visits with the same beneficiary, when the visits never actually occurred.  In certain instances, Ordog allegedly billed Medicare for services provided to beneficiaries who were deceased as of the claimed date of service.

The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

This case is being investigated by HHS-OIG and the FBI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.This case is being prosecuted by Trial Attorney Ritesh Srivastava of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

In Detroit, Hiring Former Inmates Is Beneficial for Businesses
For too many Americans who have been caught up in the criminal justice system, finding a path to career and economic stability can be challenging. Studies have shown that lack of job opportunities is a factor in high rates of recidivism. In Detroit on April 15, Secretary Perez met with employers who are playing leading roles in breaking down barriers for formerly incarcerated individuals to help stop the cycle of crime and incarceration. Joined by Mayor Mike Duggan and U.S. Attorneys Barb McQuade and Patrick Miles, Perez toured the Sakthi Automotive Group, an India-based parts supplier for General Motors. Sakthi has committed to hiring at least two former inmates from Detroit each month as the company ramps up operations in the United States. Following his tour, Perez led a roundtable discussion with other local employers — Detroit Manufacturing Systems and Total Construction and Renovation — that found hiring former inmates has been beneficial to their businesses. Perez's visit came on the heels of several recent grant announcements that will fund job training and employment services for formerly incarcerated individuals seeking marketable skills and good jobs.