Are Healthcare Fraud and Identity Theft Federal Crimes?

 Posted on January 15, 2025 in Criminal Defense

Recently, a Jamestown pharmacist was arrested and charged with nine counts of healthcare fraud and six counts of aggravated identity theft in what police are calling a multi-million-dollar healthcare fraud scheme. According to police, between 2018 and 2024, the pharmacist allegedly submitted false claims to Blue Cross Blue Shield, TRICARE, Medicaid, and Medicare for prescription drugs that were either not ordered by a healthcare provider, not actually dispensed, or that were medically unnecessary.

The alleged offenses triggered federal charges, with potential sentences of up to ten years in federal prison for each count of healthcare fraud and two years in federal prison for the aggravated identity theft counts. Federal prosecutors are also seeking a monetary judgment of $6,524,585. The U.S. Department of Health and Human Services, the Tennessee Bureau of Investigation, the Office of Inspector General, and the Department of Defense worked together to investigate this case.

Federal charges are often filed when a criminal offense involves a federal agency (like Medicare and Medicaid in this instance), when a crime is committed on federal property, or when it crosses state lines. In some instances, both federal and state charges can be filed; generally speaking, federal sentencing penalties are much harsher than state penalties. If you are facing white-collar criminal charges that may be charged federally, you need a highly experienced Anderson County, TN criminal defense attorney who is skilled in defending federal charges.  

What Criminal Offenses Are Often Charged Federally?

The criminal offenses that are most often charged under federal statutes include:

• While drug charges like drug possession are usually filed by the state, large-scale drug operations, those that cross state or international borders, or drug crimes involving trafficking, manufacturing, or distribution may be charged under federal statutes.
• Like drug charges, firearms violations will usually be charged under state laws unless the charges include trafficking, the illegal sale of weapons, possession of firearms by prohibited persons, or the firearms offense crosses state or international borders.
• White-collar crimes like healthcare fraud, wire fraud, securities fraud, mail fraud, tax evasion, money laundering, mortgage fraud, and cybercrimes like identity theft, computer hacking, and the distribution of child pornography are usually federal crimes.
• Most terrorism crimes are prosecuted federally, although not in every instance.
• Immigration violations are prosecuted by the federal government because immigration is regulated by federal laws. Illegal entry, fraudulent marriages for immigration purposes, and overstaying a visa are all prosecuted federally.

Federal Penalties vs. State Penalties

Federal penalties for similar crimes tend to be much harsher than state penalties. The federal government believes that committing a federal criminal offense is a danger to national interests. Penalties often include longer prison terms and higher fines. The Federal Bureau of Prisons manages the federal prison system, which is designed to house prisoners with differing security needs and requirements.

Can Any Attorney Defend Federal Charges?

Those charged under federal statutes must have an attorney with specific experience in federal laws and procedures. An attorney who defends federal offenses understands the stakes are often higher for the client and that federal criminal cases involve intricate laws and extensive paperwork. Attorneys who take federal criminal cases usually have connections with federal prosecutors and a comprehensive understanding of federal sentencing guidelines.  

Contact a Knox County, TN Federal Crimes Lawyer

If you need an attorney who fully understands the federal criminal justice system and can tailor your defense specifically to your unique circumstances, a Union County, TN federal crimes attorney from Jeffrey Coller, Knoxville Criminal Defense Attorney can help. Attorney Coller will aggressively defend your criminal charges, whether federal or state, always working for the best possible outcome. Call 865-281-1000 today to schedule your free consultation.