NCJ Number
62322
Date Published
1978
Length
170 pages
Annotation
TESTIMONY BEFORE THE HOUSE SELECT COMMITTEE ON AGING OF THE 95TH CONGRESS EXAMINES THE EXTENT TO WHICH ORGANIZED CRIME IS INVOLVED IN FRAUD AND RACKETEERING IN MEDICARE AND MEDICAID.
Abstract
FOR PURPOSES OF THE HEARING, 'ORGANIZED CRIME' INCLUDES 'ANY GROUP OF INDIVIDUALS WHOSE PRIMARY ACTIVITY INVOLVES A CONTINUING CRIMINAL CONSPIRACY TO VIOLATE THE CRIMINAL LAW OF THE UNITED STATES, TO SEEK ILLEGAL PROFITS AND POWER BY ENGAGING IN RACKETEERING, AND WHEN APPROPRIATE, ENGAGING IN INTRICATE FINANCIAL MANIPULATIONS. ' A QUESTIONNAIRE SENT BY THE SUBCOMMITTEE TO ALL STATE ATTORNEYS GENERAL, ALL STATE BUREAUS OF INVESTIGATION, 25 POLICE CHIEFS IN MAJOR CITIES, 14 FEDERAL ORGANIZED CRIME STRIKE FORCES, AND THE 95 U.S. ATTORNEYS OFFICE TO DETERMINE IF THERE IS EVIDENCE OF THE INVOLVEMENT OF ORGANIZED CRIME IN MEDICARE AND MEDICAID FRAUD AND RACKETEERING RECEIVED RESPONSES INDICATING SUCH ORGANIZED CRIME INVOLVEMENT IN 35 STATES. FEDERAL AND STATE LAW ENFORCEMENT OFFICALS NAMED THE MAJOR AREAS OF ORGANIZED CRIME ACTIVITY TO BE IN THE OWNERSHIP AND OPERATION OF NURSING HOMES, HOSPITALS, AND PREPAID HEALTH PLANS. TESTIMONY BEFORE THE SUBCOMMITTEE FROM FEDERAL AND STATE LAW ENFORCEMENT OFFICIALS SHOWED A CONSENSUS ABOUT WIDESPREAD FRAUD IN THE OPERATIONS RECEIVING MONEY FROM THE MEDICARE AND MEDICAID PROGRAMS; HOWEVER, THERE IS DISAGREEMENT ABOUT THE EXTENT OF CRIMINAL INVOLVEMENT OF ORGANIZED CRIME IN THESE AREAS. SOME WITNESSES QUESTIONED THE VALUE OF ATTEMPTING TO LABEL ORGANIZED CRIME AS THE PRINCIPAL CULPRIT IN THE FRAUDULENT ACTIVITY. THERE WAS GENERAL AGREEMENT IN THE TESTIMONY THAT LAW ENFORCEMENT INVESTIGATIVE ACTIVITY VIS-A-VIS MEDICARE AND MEDICAID FRAUD AND RACKETEERING MUST BE EXPANDED AND IMPROVED. THE APPENDIXES CONTAIN MATERIAL BEARING UPON THE PURPOSE OF THE HEARING. (RCB)