FBI: 8 Arrested in Alleged $12 Million Medicaid Fraud Case

Federal and state authorities say eight people have been arrested in the New Orleans area for allegedly submitting more than $12 million in fraudulent Medicare and Medicaid claims.

A news release from the FBI, Louisiana Attorney General Buddy Caldwell and others says the arrests follow a yearlong investigation involving several New Orleans metro area clinics. The operation involved submission of claims for medical services that were either not needed or never performed.

Also, people associated with the clinics allegedly paid kickbacks to two agencies that located, referred and transported patients to the clinics for the fraudulent submissions.

All of the eight who were arrested remained in custody as of April 26, according to Sheila Thorne of the FBI.