The players were charged in two separate indictments filed in federal court in Kentucky, accusing them of conspiracy, wire fraud and healthcare fraud. Prosecutors allege they submitted nearly $4 million in phony claims, leading to payouts of about $3.4 million between June 2017 and December 2018.

Those charged include five former players on the Washington Redskins, including Clinton Portis and Carlos Rogers.

Prosecutors allege the players targeted the Gene Upshaw NFL Player Health Reimbursement Account Plan, which was established as part of a collective bargaining agreement in 2006. It provides tax-free reimbursement of out-of-pocket medical care expenses that were not covered by insurance and that were incurred by former players, their spouses and dependents.

“As outlined in the indictments, a group of former players brazenly defrauded the plan by seeking reimbursements for expensive medical equipment that they never purchased,” said Assistant Attorney General Brian Benczkowski, who leads the Justice Department’s criminal division.

The players claimed to have purchased hyperbaric oxygen chambers, ultrasound machines and electromagnetic therapy devices that were designed to be used on horses, he said.

Prosecutors say the group’s alleged ringleaders, Robert McCune and Correll Buckhalter — who they allege broke off to create his own similar ring — would recruit former players by offering to submit fake claims to the health care plan. The ringleaders would then demand thousands of dollars in kickbacks for each fake claim, prosecutors allege.

The suspects are accused of fabricating letters from health care providers about using the medical equipment, fabricating prescriptions that were purportedly signed by healthcare providers and creating fake invoices from medical equipment companies in an effort to prove the equipment was purchased, according to court documents. In reality, they had never purchased or received the medical equipment, prosecutors said.

Investigators believe the defendants had forged the prescriptions and authorization letters and uncovered no evidence that any doctors were complicit in the scheme, Benczkowski said.

After the phony claims were submitted, the former players would receive reimbursement checks and pay a kickback to the ringleaders and recruiters, the indictments charge.

Prosecutors moved to bring charges, in part because the scheme put the health care plan’s tax-exempt status at risk, which could’ve forced other former players using the plan legitimately to pay more, Benczkowski said.

Four of the suspects, McCune, Rogers, John Eubanks and Ceandris Brown, were arrested Thursday morning by the FBI. Six others had agreed to surrender to authorities, the Justice Department said. They are: James Butler, Fredrick Bennett, Etric Pruitt, Tamarick Vanover, Portis and Buckhalter.

The Justice Department has also filed court papers in Kentucky noting that it plans to file charges against two other players as well, including Joe Horn, a four-time Pro Bowl wide receiver for the New Orleans Saints, and Donald “Reche” Caldwell.

The investigation was continuing, but because the plan involves only former players prosecutors do not expect any current NFL players to face charges, Benczkowski said.

Portis’ lawyer, Mark Dycio, said his client “had no knowledge that his participation in what he believed to be an NFL sanctioned medical reimbursement insurance program was illegal.”

“He is completely taken aback by the indictment and will move forward with the process of clearing his good name and those of his fellow NFL alumni,” Dycio said.

Photos by sports editor Adam Niemi.

Former Players Allegedly Defrauded health care benefit program for retired NFL players

ABOVE VIDEO: Ten former National Football League players have been charged in the Eastern District of Kentucky for their alleged roles in a nationwide fraud on a health care benefit program for retired NFL players. (Fox 5 DC Video)

BREVARD COUNTY, FLORIDA – Ten former National Football League players have been charged in the Eastern District of Kentucky for their alleged roles in a nationwide fraud on a health care benefit program for retired NFL players.

The alleged fraud targeted the Gene Upshaw NFL Player Health Reimbursement Account Plan (the Plan), which was established pursuant to the 2006 collective bargaining agreement and provided for tax-free reimbursement of out-of-pocket medical care expenses that were not covered by insurance and that were incurred by former players, their wives and their dependents – up to a maximum of $350,000 per player.

According to the charging documents, over $3.9 million in false and fraudulent claims were submitted to the Plan, and the Plan paid out over $3.4 million on those claims between June 2017 and December 2018.

“Ten former NFL players allegedly committed a brazen, multi-million dollar fraud on a health care plan meant to help their former teammates and other retired players pay legitimate, out-of-pocket medical expenses,” said Assistant Attorney General Benczkowski.

“Today’s indictments underscore that whoever you are, if you loot health care programs to line your own pockets, you will be held accountable by the Department of Justice.”

“The defendants are alleged to have developed and executed a fraudulent scheme to undermine a health care benefit plan established by the NFL – one established to help their former teammates and colleagues pay for legitimate medical expenses,” said U.S. Attorney Robert M. Duncan Jr., for the Eastern District of Kentucky.

“The defendants allegedly submitted false claims to the plan and obtained money for expensive medical equipment that was never purchased or received, depriving that plan of valuable resources to help others meet their medical needs. We have prioritized the investigation and prosecution of health care fraud in our office, and we appreciate the partnership we share with the Criminal Division and the FBI in pursuing these important matters.”

“This investigation serves as an illustration of the rampant and deliberate scams against health care plans occurring daily throughout the country,” said FBI Special Agent in Charge George L. Piro of the Miami Field Office.

“In this case, these fraudsters pocketed money from the Gene Upshaw National Football League Health Reimbursement Account Plan that was intended for former NFL players who are ill or infirm.  Over 20 FBI field offices participated in this investigation which demonstrates the level of commitment we have to rooting out this type of fraud.”

Two separate indictments filed in the Eastern District of Kentucky outline two alleged conspiracies involving different players related to the same scheme to defraud the Plan.

Those charged in the indictments are the following:

• Robert McCune, 40, of Riverdale, Georgia, is charged with one count of conspiracy to commit wire fraud and health care fraud, nine counts of wire fraud and nine counts of health care fraud.
• John Eubanks, 36, of Cleveland, Mississippi; Tamarick Vanover, 45, of Tallahassee, Florida; and Carlos Rogers, 38, of Alpharetta, Georgia, are each charged with one count of conspiracy to commit wire fraud and health care fraud, two counts of wire fraud and two counts of health care fraud.
• Clinton Portis, 38, of McLean, Virginia; Ceandris Brown, 36, of Fresno, Texas; James Butler, 37, of Atlanta, Georgia; and Fredrick Bennett, 35, of Port Wentworth, Georgia, are each charged with one count of conspiracy to commit wire fraud and health care fraud, one count of wire fraud and one count of health care fraud.
• Correll Buckhalter, 41, of Colleyville, Texas, and Etric Pruitt, 38, of Theodore, Alabama, are charged with one count of conspiracy to commit wire fraud and health care fraud.

In addition, the government has filed notice that it intends to file criminal informations charging Joseph Horn, 47, of Columbia, South Carolina, and Donald “Reche” Caldwell, 40, of Tampa, Florida, with conspiracy to commit health care fraud in the Eastern District of Kentucky.

The indictments charge that the scheme to defraud involved the submission of false and fraudulent claims to the Plan for expensive medical equipment – typically between $40,000 and $50,000 for each claim – that was never purchased or received.

The expensive medical equipment described on the false and fraudulent claims included hyperbaric oxygen chambers, cryotherapy machines, ultrasound machines designed for use by a doctor’s office to conduct women’s health examinations and electromagnetic therapy devices designed for use on horses.

According to allegations in the indictments, McCune, Eubanks, Vanover, Buckhalter, Rogers and others recruited other players into the scheme by offering to submit or cause the submission of these false and fraudulent claims in exchange for kickbacks and bribes that ranged from a few thousand dollars to $10,000 or more per claim submitted.

As part of the scheme, the defendants allegedly fabricated supporting documentation for the claims, including invoices, prescriptions and letters of medical necessity.

After the claims were submitted, McCune and Buckhalter allegedly called the telephone number provided by the Plan and impersonated certain other players in order to check on the status of the false and fraudulent claims.

This case was investigated by the FBI and is being prosecuted by the Health Care Fraud Unit of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Kentucky.

The investigation included efforts by various FBI Field Offices and Resident Agencies, including: Augusta, Georgia; Birmingham and Mobile, Alabama; Cleveland, Ohio; Chicago, Illinois; Columbia, South Carolina; Dallas and Houston, Texas; Denver, Colorado; Jackson, Mississippi; Lexington, Kentucky; New Orleans, Louisiana; Miami, Jacksonville and Tampa, Florida; Newark, New Jersey; Los Angeles, San Diego, Sacramento and Newport Beach, California; Phoenix, Arizona; Salt Lake City, Utah; and Washington, D.C.

Trial Attorneys John (Fritz) Scanlon, Alexander J. Kramer and Thomas J. Tynan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Paul C. McCaffrey and Andrew E. Smith of the Eastern District of Kentucky are prosecuting the cases.

Ten former pro football players have been charged with committing a nationwide fraud on a health care benefit program for retired NFL players.

Ten former National Football League (NFL) players, including two from Texas, have been charged in the U.S. District Court for thetern District of Kentucky in two separate indictments for their alleged roles in what prosecutors asserted was a nationwide fraud on a health care benefit program for retired NFL players.

According to prosecutors, the alleged fraud targeted the Gene Upshaw NFL Player Health Reimbursement Account Plan, which was established pursuant to the 2006 collective bargaining agreement and which provided for tax-free reimbursement of out-of-pocket medical care expenses that were not covered by insurance and that were incurred by former players, their wives, and their dependents – up to a maximum of $350,000 per player.

As alleged in the charging documents, over $3.9 million in false and fraudulent claims were submitted to the plan, and the plan paid out over $3.4 million on those claims between June 2017 and December 2018.

The following former players were charged:

• Ceandris Brown, 36, of Fresno, Texas; Clinton Portis, 38, of McLean, Virginia;  James Butler, 37, of Atlanta, Georgia; and Fredrick Bennett, 35, of Port Wentworth, Georgia, each were charged with one count of conspiracy to commit wire fraud and health care fraud, one count of wire fraud, and one count of health care fraud.
• Correll Buckhalter, 41, of Colleyville, Texas, and Etric Pruitt, 38, of Theodore, Alabama, were charged with one count of conspiracy to commit wire fraud and health care fraud.
• Robert McCune, 40, of Riverdale, Georgia, was charged with one count of conspiracy to commit wire fraud and health care fraud, nine counts of wire fraud, and nine counts of health care fraud.
• John Eubanks, 36, of Cleveland, Mississippi; Tamarick Vanover, 45, of Tallahassee, Florida; and Carlos Rogers, 38, of Alpharetta, Georgia, each were charged with one count of conspiracy to commit wire fraud and health care fraud, two counts of wire fraud, and two counts of health care fraud.

In addition, the government filed notice that it intended to file criminal informations charging Joseph Horn, 47, of Columbia, South Carolina, and Donald “Reche” Caldwell, 40, of Tampa, Florida, with conspiracy to commit health care fraud in the Eastern District of Kentucky.

The indictments charged that the alleged scheme to defraud involved the submission of false and fraudulent claims to the plan for expensive medical equipment – typically between $40,000 and $50,000 for each claim – that was never purchased or received.  As alleged, the expensive medical equipment included hyperbaric oxygen chambers, cryotherapy machines, ultrasound machines designed for use by a doctor’s office to conduct women’s health examinations, and electromagnetic therapy devices designed for use on horses.

According to allegations in the indictments, Messrs. McCune, Eubanks, Vanover, Buckhalter, Rogers, and others recruited other players into the scheme by offering to submit or cause the submission of these false and fraudulent claims in exchange for kickbacks and bribes that ranged from a few thousand dollars to $10,000 or more per claim submitted. Prosecutors asserted that the defendants fabricated supporting documentation for the claims, including invoices, prescriptions, and letters of medical necessity.  After the claims were submitted, Mr. McCune and Mr. Buckhalter allegedly called the telephone number provided by the plan and impersonated certain other players in order to check on the status of the false and fraudulent claims, the government said.