{"id":60147,"date":"2025-12-15T13:36:55","date_gmt":"2025-12-15T21:36:55","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=60147"},"modified":"2025-12-15T13:36:55","modified_gmt":"2025-12-15T21:36:55","slug":"wound-graft-company-owners-sentenced-for-1-2-billion-health-care-fraud-and-agree-to-pay-309-million","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=60147","title":{"rendered":"Wound Graft Company Owners Sentenced for $1.2 Billion Health Care Fraud and Agree to Pay $309 Million"},"content":{"rendered":"<div class=\"flex flex-col text-sm @w-xl\/main:pt-header-height pb-25\">\n<article class=\"text-token-text-primary w-full focus:outline-none [--shadow-height:45px] has-data-writing-block:pointer-events-none has-data-writing-block:-mt-(--shadow-height) has-data-writing-block:pt-(--shadow-height) [&amp;:has([data-writing-block])&gt;*]:pointer-events-auto scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]\" dir=\"auto\" tabindex=\"-1\" data-turn-id=\"request-69407ab9-4d4c-832c-b996-4e02c3cca003-2\" data-testid=\"conversation-turn-10\" data-scroll-anchor=\"true\" data-turn=\"assistant\">\n<div class=\"text-base my-auto mx-auto pb-10 [--thread-content-margin:--spacing(4)] @w-sm\/main:[--thread-content-margin:--spacing(6)] @w-lg\/main:[--thread-content-margin:--spacing(16)] px-(--thread-content-margin)\">\n<div class=\"[--thread-content-max-width:40rem] @w-lg\/main:[--thread-content-max-width:48rem] mx-auto max-w-(--thread-content-max-width) flex-1 group\/turn-messages focus-visible:outline-hidden relative flex w-full min-w-0 flex-col agent-turn\" tabindex=\"-1\">\n<div class=\"flex max-w-full flex-col grow\">\n<div class=\"min-h-8 text-message relative flex w-full flex-col items-end gap-2 text-start break-words whitespace-normal [.text-message+&amp;]:mt-1\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"479d6ee8-f58e-4012-9ee2-d70b98cd3580\" data-message-model-slug=\"gpt-5-2-thinking\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[1px]\">\n<div class=\"markdown prose dark:prose-invert w-full break-words light markdown-new-styling\">\n<p data-start=\"0\" data-end=\"176\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-16417 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/10\/Veterans-Fraud-300x172.png\" alt=\"\" width=\"300\" height=\"172\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/10\/Veterans-Fraud-300x172.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/10\/Veterans-Fraud.png 480w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Federal prosecutors called it a first-of-its-kind case: an Arizona wound-graft operation that, they said, turned the nation\u2019s sickest and oldest patients into a billing engine, authorites announced last week.<\/span><\/p>\n<p data-start=\"178\" data-end=\"346\"><span style=\"font-size: 20px;\">Alexandra Gehrke, 39, of Phoenix was sentenced Oct. 7 to 15\u00bd years in federal prison. Her husband, Jeffrey King, 46, also of Phoenix, was sentenced Oct. 10 to 14 years.<\/span><\/p>\n<p title=\"\" data-start=\"348\" data-end=\"822\"><span style=\"font-size: 20px;\">Court records say the couple ran a sweeping wound-care scheme from 2022 through 2024 built on kickbacks and volume. Gehrke\u2019s companies hired medically untrained sales representatives to scour Arizona for Medicare beneficiaries with wounds \u2014 including many in hospice. <\/span><\/p>\n<p title=\"\" data-start=\"348\" data-end=\"822\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3918 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png\" alt=\"Two Men Arrested for Allegedly Operating One of the Largest Synthetic Drug Smuggling Rings\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-300x300.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice-150x150.png 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Department-of-Justice.png 350w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Once the patients were found, prosecutors said, the sales force ordered costly amniotic membrane allografts, bioengineered skin substitutes made from human placental tissue, for application to those wounds.<\/span><\/p>\n<p title=\"\" data-start=\"824\" data-end=\"1339\"><span style=\"font-size: 20px;\">To increase profits, authorities said, Gehrke required the sales representatives to order only the largest graft sizes available, even when the size \u2014 or the graft itself \u2014 wasn\u2019t medically reasonable. <\/span><\/p>\n<p title=\"\" data-start=\"824\" data-end=\"1339\"><span style=\"font-size: 20px;\">Patients were steered through Medicare-enrolled companies owned by Gehrke and later a company co-owned by King, allowing claims to be submitted. <\/span><\/p>\n<p title=\"\" data-start=\"824\" data-end=\"1339\"><span style=\"font-size: 20px;\">The companies bought grafts from a wholesale distributor, hired nurse practitioners to apply them, and billed Medicare and other insurers, according to court documents.<\/span><\/p>\n<p title=\"\" data-start=\"1341\" data-end=\"1801\"><span style=\"font-size: 20px;\">Prosecutors said the nurse practitioners were told to set aside their medical judgment and apply whatever quantities and sizes the sales representatives ordered. <\/span><\/p>\n<p title=\"\" data-start=\"1341\" data-end=\"1801\"><span style=\"font-size: 20px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-41105 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2-300x300.jpg\" alt=\"West Virginia Woman Took Top Secrets, Committed Kidnapping\" width=\"300\" height=\"300\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2-300x300.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2-150x150.jpg 150w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2020\/07\/cropped-judge-gavel-2.jpg 684w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>The result, authorities allege, included large grafts placed on small wounds, multiple grafts used on single wounds, grafts billed for wounds that didn\u2019t exist, and grafts applied to terminally ill patients receiving palliative care \u2014 some of whom died within days, or the same day, of application.<\/span><\/p>\n<p title=\"\" data-start=\"1803\" data-end=\"2167\"><span style=\"font-size: 20px;\">Over an 18-month span from November 2022 through May 2024, prosecutors said the group submitted about $1.212 billion in false claims, with insurers paying roughly $614.9 million. <\/span><\/p>\n<p title=\"\" data-start=\"1803\" data-end=\"2167\"><span style=\"font-size: 20px;\">Gehrke, through companies she owned, received more than $279 million in alleged kickbacks from the distributor, prosecutors said, and King\u2019s company received an additional $130 million.<\/span><\/p>\n<p title=\"\" data-start=\"2169\" data-end=\"2391\"><span style=\"font-size: 20px;\">Investigators seized what they described as proceeds of the scheme, including $97 million from bank accounts, more than $21 million in annuities, luxury vehicles \u2014 including a Ferrari \u2014 as well as cash and precious metals.<\/span><\/p>\n<p title=\"\" data-start=\"2393\" data-end=\"2842\" data-is-last-node=\"\" data-is-only-node=\"\"><span style=\"font-size: 20px;\">Gehrke pleaded guilty Oct. 24, 2024, and King pleaded guilty Jan. 31, 2025, both to conspiracy to commit health care fraud and wire fraud. <\/span><\/p>\n<p title=\"\" data-start=\"2393\" data-end=\"2842\" data-is-last-node=\"\" data-is-only-node=\"\"><span style=\"font-size: 20px;\">In addition to prison time, the court ordered restitution and forfeiture running into the hundreds of millions. <\/span><\/p>\n<p title=\"\" data-start=\"2393\" data-end=\"2842\" data-is-last-node=\"\" data-is-only-node=\"\"><span style=\"font-size: 20px;\">Prosecutors also cited separate civil settlements under the False Claims Act, including an agreement by Gehrke and Apex Medical LLC to pay $279.9 million and an agreement by King to pay $30 million.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"z-0 flex min-h-[46px] justify-start\"><\/div>\n<div class=\"mt-3 w-full empty:hidden\">\n<div class=\"text-center\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<div class=\"pointer-events-none h-px w-px absolute bottom-0\" aria-hidden=\"true\" data-edge=\"true\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Federal prosecutors called it a first-of-its-kind case: an Arizona wound-graft operation that, they said, turned the nation\u2019s sickest and oldest patients into a billing engine, authorites announced last week. Alexandra Gehrke, 39,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":57655,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-60147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Wound Graft Company Owners Sentenced for $1.2 Billion Health Care Fraud and Agree to Pay $309 Million<\/title>\n<meta name=\"description\" content=\"Federal prosecutors called it a first-of-its-kind case: an Arizona wound-graft operation that, they said, turned the nation\u2019s sickest and oldest patients\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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