Scottsdale couple ordered to millions in restitution for health care fraud

SCOTTSDALE, Ariz. — A Valley couple has pleaded guilty in federal court to perpetuating a health care scheme that targeted terminally ill patients.

Jeffrey King, 46, pleaded guilty on Jan. 31 to conspiring to commit health care fraud and wire fraud. His wife, 39-year-old Alexandra Gehrke, pleaded guilty last October to similar charges. 

The defendants operated companies that submitted $1.2 billion in fraudulent and false claims to health insurance plans, including $960 million to federal health programs, according to the U.S. Department of Justice.

The couple’s companies provided wound care and they reportedly pressured nurse practitioners to provide wound grafts to patients who didn’t need them.

As part of the plea agreements, the defendants have been ordered to collectively pay $1.2 billion in restitution. The government has already seized $100 million in assets from the couple, according to the DOJ. 

King and Gehrke will be sentenced at a later date and each face up to 20 years in prison.

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*Editor’s Note: The above video is from an earlier broadcast in 2024.*