Feds turn to hospitals to fight fraud schemes

Authorities are seeking partnerships with health care institutions to stop coronavirus-related fraud schemes.

PHILADELPHIA » Federal authorities are seeking partnerships with health care institutions in the region to stop coronavirus-related fraud schemes.

U.S. Attorney William M. McSwain sent a letter to hospital leaders asking for their assistance in identifying those suspected of perpetrating coronavirusrelated crimes and urged them to report suspicious conduct to his office. McSwain said federal authorities stand ready to investigate and prosecute those who seek to exploit the “devastating effects” of the COVID-19

pandemic for their financial benefit.

McSwain identified several types of coronavirusrelated crimes, including hoarding and price gouging of critical medical supplies and advertising or selling of fake or non-existent medical equipment for phony cures.

“Criminals are seeking to take advantage of the pandemic by perpetrating frauds, hoarding vital medical supplies, or engaging in price gouging. If left unchecked, these bad actors can inhibit hospitals, physicians, and other health care professionals, as well as governmental agencies and the public, from successfully saving lives and mitigating the spread of the virus,” McSwain wrote in the letter dated April 16.

For health care institutions, illegal hoarding and price gouging of health and medical supplies is of critical concern, McSwain said.

The letter identified the health and medical supplies that the U.S. Secretary of Health and Human Services has designated as “scarce” under the Defense Production Act, and advised that hoarding or selling the supplies at exorbitant prices will trigger criminal penalties and civil enforcement remedies.

The letter identified more than a dozen critical health and medical supplies covered by the Defense Production Act, including: N-95 and other filtering face piece respirators; portable ventilators; personal protective equipment such as Tyvek suits, face masks, surgical masks, surgical gloves and face shields; medical or surgical gowns; drug products with active ingredient chloroquine phosphate or hydroxychloroquine HCl; and disinfecting devices intended to kill pathogens and other kinds of microorganisms by chemical means or physical means, and other sanitizing and disinfecting products suitable for use in a clinical setting.

McSwain encouraged hospital employees to report any coronavirus-related suspicious activity or fraud schemes to his office and to the national hotline at The National Center for Disaster fraud at 1-866-7205721 or at disaster@leo.gov.

“We are all extremely grateful for the vital work these health care professionals are performing on a daily basis. I look forward to collaborating with area health care systems and hospitals to protect the community and enforce the laws of the United States during this time of national emergency,” McSwain said.

“Criminals are seeking to take advantage of the pandemic by perpetrating frauds, hoarding vital medical supplies, or engaging in price gouging.” - U.S. Attorney William McSwain