Chicago man indicted in Medicare fraud case

June 29, 2011

The Associated Press

Federal authorities say they've arrested the operator of two Chicago-area home health care businesses on charges he swindled Medicare out of at least $20 million over the last five years.

In a news release Wednesday, the U.S. Attorney's Office says Jacinto "John" Gabriel Jr. of Chicago was indicted on fraud and money laundering charges after he allegedly schemed with others to submit false claims for reimbursement for home health care services. 

In the release, the FBI alleges Gabriel and unidentified "co-schemers" used more than $5.5 million to buy jewelry, cars and real estate, gamble at casinos and bribe doctors in exchange for patient referrals. 

The 43-year-old Gabriel is the only person charged in the alleged scheme.