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Medicare Fraud and the Russian Mob

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    Professor Mark Galeotti discusses how the Russian mob is scheming to take millions from our health-care system.

  • Duration 1:42
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-- now write a total turn to subject this is fascinating.

According to the attorney general no less -- is roughly sixty to ninety billion dollars with a fraud in Medicare every year.

Hugely profitable for criminals on chemical that but the Russian mall but we are told is playing a big role -- the -- Joining us now is market -- -- He's a professor at NYU and he is an expert on the Russian law professor welcome back good to see you again good of Iraq -- explain how the Russian mob is involved in America's Medicare system.

They're very very good at working out how to use and abuse bureaucracies in part because they had seventeen years -- contained in the motherland.

But most of these social shot people these are not the Tony Soprano who's these -- much -- -- -- new generation of sort of -- businessmen.

I live on a defined in his face it when you have three quarters of a trillion dollars a year being spent on Medicare and Medicaid.

As a massive opportunities to ripping -- that budget so how -- they do it give me given the mechanism in the process by which they writ of law.

Basically they set up operations in which a -- all fake billing goes down.

Operations and never really take place him medical equipment has never really gets older people signing off on things they -- to -- one or two ways.

It either -- the -- column we set up a big operation that was one for example back in 2010 which involved over hundred corporations.

Connected about a 160 million dollars that was issued on -- and and on the union American it's not just Russians.

But also at the same time as these big operations another one in Brighton Beach for example in the -- about 57 million dollars.

But the point is it was -- actually fit to run its full operation about a quarter of a billion dollars just that one operation next.