On Thursday morning, the Department of Justice indicted eight former NFL players — Clinton Portis, John Eubanks, Tamarick Vanover, Robert McCune, Ceandris Brown, James Butler, Fred Bennett, and Etric Pruitt on charges that they defrauded the league’s Gene Upshaw NFL Player Health Reimbursement Account Plan. The DOJ also announced that it will seek charges against former players Joe Horn and Reche Caldwell. Horn is being charged through a bill of information, because he is co-operating with the government in the case.
According to the indictments, over $3.9 million in false or fraudulent claims were submitted to the Plan, and over $3.4 million was paid out from June, 2018 to December, 2018.
“Ten former NFL players allegedly committed a brazen, multi-million-dollar fraud on a health care plan meant to help their former teammates and other retired players pay legitimate, out-of-pocket medical expenses,” Assistant Attorney General Brian Benczkowski said in a press conference. “Today’s indictments underscore that, whoever you are, if you loot health care programs to line your own pockets, you will be held accountable by the Department of Justice.”
The eight defendants are charged with one count of conspiracy to commit wire fraud and health care fraud based on the accusations that they sent reimbursement forms via facsimile for such things as hyperbaric chambers, electro-magnetic therapy mobile devices, muscle stimulator pule massagers, and CryoSauna tanks (in which a patient is subjected to extreme cold temperatures to reduce muscoloskeletal pain and inflammation). There are also nine separate counts of wire fraud, and nine different counts of health care fraud. Counts 1-10 can be penalized by imprisonment for not more than 20 years, a fine of $250,000 or twice the gross gain or loss, and supervised release for not more than three years. Counts 11-19 can be penalized by imprisonment for not more than 10 years, a fine of $250,000 or twice the gross gain or loss, and supervised release for not more than three years.
The players allegedly fabricated letters from health care providers regarding the use of the medical equipment, made up fake prescriptions that were purported to be signed by health-care providers, and created false invoices for medical equipment to prove purchase.
According to the indictment, the defendants “aided and abetted by each other and others known and unknown to the Grand Jury, did knowingly and willfully execute a scheme and artifice to defraud a health care benefit program by means of materially false and fraudulent pretenses, representations, and promises.”
Several of the players named allegedly reached out to other former players to engage in in the scheme in return for kickbacks up to $10,000, which means that more indictments may be coming.
A money judgment has been weighed against the eight defendants in which it is stated that if the equipment in question cannot be located, has been transferred to a third party, or has diminished in value, “the Unites States of America shall be entitled to forfeiture of substitute property.”