SCOTTSDALE, Ariz. – A Scottsdale couple who lived a luxurious lifestyle at the expense of taxpayers will now spend several years in federal prison.
What we know:
Jeffrey King and Alexandra Gehrke defrauded the Medicare system in a massive scheme, billing for “medically unnecessary wound grafts” for elderly and terminally ill patients. Court records say the two submitted $1.2 billion in false and fraudulent claims to health insurance plans, including Medicare, through companies they owned and operated.
The couple pleaded guilty earlier this year to conspiracy to commit health care fraud and wire fraud.
Gehrke, who owned Apex Medical LLC, incentivized “medically untrained” sales representatives to find Medicare patients with wounds of any size or severity. The couple ordered the largest possible allografts to be placed on the wounds, receiving a combined $280 million in illegal kickbacks.
Gehrke must pay nearly $615 million in restitution, and King must pay slightly more than $605 million in restitution. The couple must also forfeit $410 million in fraudulent funds and assets, including expensive properties, luxury cars, jewelry and gold.
What they’re saying:
King’s kids, family and friends spoke on his behalf asking for mercy, talking about his military service and how he was a great dad who used to be a DJ.
King was visibly emotional in court, sobbing at times, and after the 14-year sentence was announced, he even looked at the prosecution, whispering, “Why?”
The judge will recommend that he be housed at the federal prison in Safford. His family and attorneys did not want to provide a comment after court was adjourned.