CHESHIRE, Conn. (WFSB) — A nurse from Cheshire is among more than 300 people indicted in what federal prosecutors are calling the largest healthcare fraud sweep in U.S. history, with over $14 billion in false Medicare claims exposed.
Michele Rene Luzzi Muzyka, 60, an advanced practice registered nurse (APRN), is accused of illegally prescribing controlled medications to patients without medical need and accepting $200 in cash per visit. Prosecutors said an undercover agent, posing as a Medicaid recipient, obtained prescriptions in a sting operation.
The Justice Department said Muzyka prescribed combinations of Xanax and Adderall—powerful and addictive drugs—to patients recklessly. These prescriptions are believed to be connected to at least five fatal overdoses in Connecticut in the past three years.
Muzyka’s charges are part of Operation Gold Rush, a massive federal crackdown on healthcare fraud and money laundering, heavily tied to a Russian criminal organization operating in the U.S.
The investigation uncovered that the criminal network purchased legitimate medical equipment companies, including one in Bethel, Connecticut called Medical Home Care, using them to file fraudulent Medicare claims. The group misused elderly and disabled individuals’ identities, billing Medicare for equipment that was never delivered.
Kevin Valdhans, a Czech citizen allegedly tied to the transnational crime group, is said to have purchased several companies with Medicare billing privileges. According to federal documents, Valdhans fled the U.S., and no charges have been filed against him at this time.
The group’s fraudulent profits were reportedly funneled to overseas accounts in China and Malaysia. Authorities recovered $17 million during the operation, though the total fraud identified exceeds $14 billion.
MMA coach Julian Reza, who trains at a gym adjacent to the now-exposed fake medical business in Bethel, recalled suspicious activity. “Sometimes I’d go outside, and there were just sketchy people,” he said. “It didn’t feel right.”
Federal authorities continue their investigation into the broader network, calling it one of the most elaborate and damaging healthcare fraud schemes ever uncovered in the U.S.
