Alexandra Gehrke and Jeffrey King, a Scottsdale couple, are at the center of a nearly billion-dollar Medicare fraud scheme, according to a federal indictment. Prosecutors allege the duo received $330 million in illegal kickbacks, which they used to fund a lavish lifestyle, including a $6 million home near Camelback Mountain, luxury cars, and gold bars.
The indictment claims that the couple targeted elderly patients, often in hospice care, through companies providing wound care services. Nurse practitioners were allegedly pressured into applying unnecessary wound grafts to patients, some of whom passed away shortly after receiving the procedures.
Between fraudulent Medicare claims and other providers, Gehrke and King submitted nearly $900 million worth of claims over two years. The illegal kickbacks they received fueled their extravagant purchases, including a Ferrari, multiple Mercedes-Benz vehicles, and nearly $525,000 worth of gold and jewelry. The couple had over $50 million in various bank accounts.
Authorities arrested the couple in June at Sky Harbor International Airport, as they were preparing to board a flight to London. Prosecutors believe they were attempting to flee the country, citing suspicious items found in their possession, including books on evading capture and criminal law.
Dana Kennedy, Arizona’s Director of AARP, expressed outrage, describing the scheme as “disgusting,” especially considering the victims were terminally ill patients.
All of the couple’s assets have been seized, but authorities believe millions of dollars remain unaccounted for, heightening concerns about their potential flight risk.