NCJ Number
46472
Date Published
Unknown
Length
6 pages
Annotation
EFFORTS BY THE UNITED STATES POSTAL SERVICE TO INVESTIGATE AND COMBAT MEDICAL FRAUD THROUGH THE MAILS ARE DESCRIBED.
Abstract
THE POSTAL INSPECTION SERVICE, A DIVISION OF THE U.S. POSTAL SERVICE, MAKES A PARTICULAR EFFORT TO ELIMINATE QUACKERY AND FRAUD IN THE FIELD OF HEALTH, AS THIS TYPE OF FRAUD PRESENTS A POTENTIAL DANGER TO HUMAN LIFE. THE PROBLEM OF MEDICAL POSTAL FRAUD HAS BEEN AN EXTENSIVE ONE FOR OVER 100 YEARS. IN 1924, A SPECIAL UNIT OF POSTAL INSPECTORS WAS ORGANIZED TO DEAL SOLELY WITH MEDICAL FRAUD AS DISTINGUISHED FROM OTHER CATEGORIES OF FRAUD SUCH AS STOCK PROMOTIONS, INSURANCE, AND CHARITY FRAUDS. THESE INSPECTORS MAINTAIN A LIAISON WITH THE FOOD AND DRUG ADMINISTRATION, THE FEDERAL TRADE COMMISSION, AND OTHER FEDERAL AGENCIES CONCERNED WITH FALSE ADVERTISING AND INTERSTATE COMMERCE, BUT THE POSTAL SERVICE RETAINS PRIMARY JURISDICTION IN THOSE CASES WHICH INVOLVE USE OF THE MAILS TO COMMIT THE FRAUD. A CONVICTION OF MAIL FRAUD IS DIFFICULT FOR INSPECTORS TO OBTAIN. ALTHOUGH CRIMINAL STATUTES PROVIDE FOR HEAVY PENALTIES, JURIES HAVE BEEN RELUCTANT TO CONVICT UNLESS THE ELEMENT OF INTENT TO DEFRAUD IS CLEARLY PRESENT. IT IS NOT SUFFICIENT FOR THE CLAIMS TO BE FALSE; THE PROMOTER MUST KNOW THEM TO BE FALSE. THIS KNOWLEDGE IS DIFFICULT TO PROVE. IN ADDITION, EXPERT MEDICAL TESTIMONY IS NOT ALWAYS SUFFICIENT TO OBTAIN A CONVICTION. TESTIMONIALS FROM PERSONS WHO HAVE BEEN 'CURED' BY THE PRODUCT ARE OFTEN PERSUASIVE TO JURIES. THE INVESTIGATION OF ALLEGED MEDICAL FRAUDS IS CONDUCTED UNDER TWO FEDERAL STATUTES: ONE DEALS WITH CRIMINAL PROSECUTION OF PERSONS USING THE MAILS IN A SCHEME TO DEFRAUD AND THE OTHER CONCERNS MISUSE OF THE MAILS THROUGH FALSE REPRESENTATIONS. INVESTIGATIONS ARE OFTEN INITIATED FROM COMPLAINANTS AND FROM INSPECTORS' SUBSCRIPTIONS TO MANY PERIODICALS. IF AN ADVERTISEMENT IS FOUND TO BE FALSE, THE PROMOTER IS OFTEN GIVEN THE CHANCE TO AGREE TO DISCONTINUE THE BUSINESS. IF HE DOES SO, THE CASE IS CLOSED. IF NOT, A COMPLAINT IS FILED BY THE POSTAL SERVICE AND CHARGES ARE BROUGHT AGAINST HIM. EXCERPTS FROM THE FRAUD AND FALSE REPRESENTATION STATUTES ARE PROVIDED. (VDA)