Health Information Management

DOJ charges two under HIPAA

HIPAA Weekly Advisor, September 18, 2006

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Florida prosecutors have indicted two people for charges that include a criminal violation of HIPAA after stolen patient information wound up on bogus Medicare claims, the Department of Justice (DOJ) announced September 8.

Fernando Ferrer, Jr., and Isis Machado face an eight count indictment in the Southern District Court of Florida. According to prosecutors, Machado used her position at the Cleveland Clinic's office in Weston, FL, to download the information of more than 1,000 patients. She then sold the data to Ferrer, her cousin, who used the stolen Social Security numbers, names, dates of birth, and Medicare numbers to submit approximately $2.8 million in false Medicare claims.

"Under HIPAA, we expect health care employees to keep our personal information confidential and secure. We will not stand by when this confidentiality is broken and criminals sell and profit from patients' health records," FBI agent Jonathan Solomon said in a DOJ release. The case is the third criminal prosecution of HIPAA. Ferrer and Machado face maximum HIPAA penalties of 10 years in prison and a $250,000 fine.



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