Michelle Malkin » Soros-backed Medicare insurer raided by FBI

Soros-backed Medicare insurer raided by FBI

By Michelle Malkin • October 25, 2007 10:36 AM

The St. Petersburg Times reports on an FBI raid of WellCare, a shady Medicare insurer…initially funded by far Left billionaire George Soros and run by one of his acolytes:

For the past two years, analysts have been asking how fast-growing WellCare Health Plans of Tampa has been able to make so much money running government health plans for the poor and elderly. Now government investigators may be asking the same thing.

On a rainy Wednesday morning, more than 200 federal and state agents swarmed WellCare’s campus on Henderson Road in Tampa, forcing employees onto the sidewalk and into their cars.

Steven Meitzen, 51, who arrived at WellCare about 9:40 a.m. for a job interview, said he was initially told it was a bomb scare. “Later on, I talked to someone who said the FBI had a subpoena and were looking for records,” he said.

Wellcare serves Medicare and Medicaid customers–more than 350,000 seniors in Florida alone. The stock fell yesterday on news of the raid. Seems stories have been floating around for a while about the company enrolling dead people and such:

Thomas Carroll, analyst with Stifel Nicolaus in Baltimore, called the raid “ominous” and downgraded WellCare shares to “sell” from “hold” in a note to clients. Contacts within the company said BlackBerries, computers and files were seized from corporate, marketing and human resources offices, according to Carroll.

Carroll suspects the raid is potentially the result of a lawsuit in which an employee brought a matter to the attention of authorities.

“When the FBI and HHS raid a health care company, the outlook on earnings, legal proceedings and the entire operations of the company can be questioned,” Carroll said.

WellCare’s business practices have come under increased criticism over the past several months. Last spring, the company said independent sales agents in Georgia enrolled dead people in Medicare plans. In May and June, WellCare representatives appeared along with other insurance executives at hearings in the Senate and House into aggressive Medicare marketing practices. WellCare and six other insurers subsequently agreed to a temporary halt in marketing one type of Medicare plan, while promising to initiate consumer safeguards. In August, however, Medicare cited WellCare once again for violating several provisions of its Medicare contract, including sales practices.

WellCare, which had earnings of $139.2-million in 2006, gets all of its nearly $4-billion in revenues from state or federal governments.

WellCare’s PAC has donated considerable money to Republicans. But the company took off with a generous helping hand from George Soros:

WellCare was a slow-growing Florida company until 1992 when its owner, Dr. Kiran Patel, sold it to a New York investment group led by financier George Soros. The bankers hired Todd Farha, an aggressive Harvard MBA, to transform the company. Under his leadership, WellCare’s earnings have increased eight-fold and the company’s investors and executives like Farha have profited handsomely from appreciation in its stock.

Soros Private Equity Investors had owned about 80 percent of WellCare at the time of its IPO. “In December [2004], Soros Private Equity Investors sold 5.6 million shares for about $170 million. In April [2005], Soros spun off the $1.3-billion private equity group and the new firm was renamed TowerBrook Capital Partners. TowerBrook is headed by Neal Moszkowski, who previously led Soros Private Equity. Moszkowski also is chairman of the WellCare board.”

Also on the board of directors: former Democrat U.S. senator and Florida governor Bob Graham.

Jacob Goldstein at the WSJ Health Blog notes:

The company has done well for itself. As the WSJ reported, George Soros was the largest investor in a private equity fund that cashed out of WellCare in August of ‘06, bringing in a total of $870 million for an investment that originally cost $220 million.

WellCare, which says it provides managed care to 2.3 million Medicare and Medicaid patients, hasn’t been accused of any crimes in connection with this morning’s raids. Nevertheless, the Health Blog can’t help but be reminded of Florida’s remarkably robust health-care fraud industry. Our previous posts on that subject include billing for “clinically unbelievable dosages” of drugs, and a Rolls Royce purchased with ill gotten gains.

Welcome to George Soros’s America?

Posted in: Health care

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#1

On October 25th, 2007 at 10:44 am, William Amos said:

Maybe Micheal Moore can do “Sicko” 2 the George Soros saga
#2

On October 25th, 2007 at 10:46 am, Rogue said:

First link in the chain that takes down the most dangerous man in America?
#3

On October 25th, 2007 at 10:49 am, The Raging Republican said:

FBI vs. George Soros

I LOVE IT!
#4

On October 25th, 2007 at 10:49 am, 30 pcs of silver said:

#1, funny.
#2, I pray that this is the case.
#5

On October 25th, 2007 at 10:52 am, ThackerAgency said:

It doesn’t surprise me. Medicare is ripe for corruption because it is the doctors word against basically nobody. There are no checks in place. If a claim coincides with a SSN, they pay it. It isn’t as much as a private insurance company would pay for the same service. However, a private insurance company has the lawyers to police this kind of crap.

There is a ton of money in the health care system sloshing around. And there are a lot of unseemly people who just want to get their hands on as much as they can.
#6

On October 25th, 2007 at 10:54 am, shooter said:

No wonder Hillary wants it this way…
#7

On October 25th, 2007 at 10:55 am, Ceroth said:

Yeah, as Rogue says “this is the first link in taking out the most dangerous man in America” but hopefully it is also the first link in taking out his accomplice, the most dangerous woman in America and you know what that is.
#8

On October 25th, 2007 at 10:55 am, BrianNY said:

Let’s see. $870,000,000 - $220,000,000 =
$650,000,000 of gross profit for Mr. Soros when he flipped this Medicare puppy out in 2006. That’s $650 million of juice that Media Matters had to investigate possible Soros/Big Government corruption…oh wait.
#9

On October 25th, 2007 at 10:59 am, BrianNY said:

Hope Bill Moyers is flying out of the telephone booth, as we speak, to get to the bottom of this possible Soros/Big Gov/Corporate scandal…oh wait.
#10

On October 25th, 2007 at 11:02 am, Marshall Russ said:

Anything or anyone associated with G.Soros is anti-American. A little research about this man and his beliefs proves that. Any politicians or groups taking his money from him or his shadow orgs. should scare Americans.Be afraid, very afraid.
#11

On October 25th, 2007 at 11:02 am, Jim M. said:

Let’s not be so judgmental. After all, all those dead Democratic voters should have a fair chance at health insurance. They need to at least be healthy enough to cast their votes.

Objections to this practice smack of blatant discrimination against the deceased. If we can propose to cover families not in need under government-sponsored health care, we cannot ignore the needs of those who have departed this world in body but not in voting.

The interred dems maintain an interest in the country post mortem, as evidenced by the exercise of their voting rights from the great beyond. Deceased republicans, on the other hand, do not show the same degree of dedication and interest in this great nation, remaining silent in the electoral process.

We need to reward citizens that reach out from the grave to cast their vote. These departed dems need a health care plan that provides for their needs. And it is a need. Their present employer does not see fit to offer any kind of plan providing for their comfort and welfare, claiming it defeats the whole purpose of the existence of Hades.
#12

On October 25th, 2007 at 11:02 am, 30 pcs of silver said:

BrianNY, not to worry, the NY Times and TNR are on the case…oh wait
#13

On October 25th, 2007 at 11:03 am, zmdavid said:

I’m surprised Medicare doesn’t cover people in the afterlife.
#14

On October 25th, 2007 at 11:03 am, BrianNY said:

Possible Soros/Medicare/Dead People scandal? Hope some really big, international oversight committee like the World Court or the UN or Human Rights Watch gets to the bottom of this…oh wait.
#15

On October 25th, 2007 at 11:04 am, 30 pcs of silver said:

Good one Jim M.
#16

On October 25th, 2007 at 11:04 am, granite said:

I do not think I am inaccurate nor oversimplifying.

This looks like yet another example of the whirlwind our society/culture has reaped, is reaping, and will continue to reap as a result of the tremendous changes for the worse that:

if not having their very beginning in the 60s and 70s, certainly had a huge push then that transformed the behvior (and its consequences) they fostered from fringe to widespread, virtually mainstream.

People who were concerned about many of the changes, patterns, events, etc, etc, etc…occurring at that time were derided by such remarks as:

Can you prove that this will lead to something bad?
Who are you to judge…?
You’re worried about nothing.
You’re nothing but a prude.
You’re against peoples’ rights and freedoms.
Government should be providing this for people…and so on, and so on.

This is the topic for an essay, not for a blog post.
I cannot do it justice here.
I do not have time to adduce supporting evidence…I have a demanding day job, like lots and lots of you folks who keep the country running.

But, next time you wonder why:

dangerous criminals are running around loose;

our society/culture is a sewer;

you wouldn’t dare let your 8- or 10-year-old kid walk alone to a store downtown;

government is so bloated and expensive, and straining to get even more so;

folks with common manners seem to be fewer than they used to be;

dishonest businessmen, lawyers, and doctors seem to be more numerous than they used to be, and often seem to be able to get away with more;

court proceedings so often seem to get bogged down, to drag on, and to result in no to minimal punishment to wrongdoers;

(I have to stop now, because few people as it is are going to read this long post.)

Just remember how the folks warning about all this back in 60s (hey, I was only in high school in the late 60s - I thought all this change looked “cool”, or, at least, not so bad - what the hell did I as a stupid kid know?) were mocked and ridiculed, as the wind was being sown. (No, I am by no stretch of the imagination a biblical scholar.)

Remember how they (most probably traditionalists of a cetrtain worldview) were mocked by others (most likely progressives, leftists, secular humanists, of the opposite worldview), when you wonder how this could have happened to our society/culture.
#17

On October 25th, 2007 at 11:07 am, zmdavid said:

#11 Jim M. - Not to mention the life-long republicans that switch to Democrat when they die.
#18

On October 25th, 2007 at 11:08 am, trinitytim said:

Bonus #1: George Soros

Bonus #2: Bob Graham

Oh, this is sweet!!!!!
#19

On October 25th, 2007 at 11:10 am, BrianNY said:

Hope ABC/NBC/CBS/CNN/MSNBC/CNBC/BRAVO/LIFETIME/OXYGEN/OPRAH/TIME/NEWSWEEK/MTV/NOBELCOMMITTEE find out who this courageous SOROS/Big Gov. whistleblower was and enshrine him/her “Whatever of the Year”…oh wait.
#20

On October 25th, 2007 at 11:12 am, publiuswarmac9999 said:

Soros is an international criminal who has made a killing by manipulating the loopholes in governmental systems. The manipulation is always covered by a front organization. He pulls the strings from afar, - and is just far enough outside the law that he never gets caught. He is undoubtedly a very dangerous man — possibly the most dangerous one in the entire civilized world.
#21

On October 25th, 2007 at 11:13 am, granite said:

#20 publiuswarmac9999:

I believe you are dead-on correct.
#22

On October 25th, 2007 at 11:14 am, swj719AWG said:

Welcome to George Soros’s America?

Say it, AJ.
#23

On October 25th, 2007 at 11:20 am, BrianNY said:

Let me get this straight. UN Darling George Soros is now wanted Dead or Alive in France, Malaysia AND Florida? Quick George, better fire up the Millennium Falcon.
#24

On October 25th, 2007 at 11:25 am, BrianNY said:

George Soros Lied and People Died!! Or…wait…is it, People Died and THEN George Soros Lied!! Oh, I’m so confused.
#25

On October 25th, 2007 at 11:36 am, feebiebabe said:

#16, granite, as always, great post. i especially like the manners part.

on another note, the picture, michelle…that’s a winner. LMAO.

“four biiiilllion dollars!!!”
#26

On October 25th, 2007 at 11:37 am, granite said:

Thanks, feebiebabe.

BTW, shouldn’t someone tell Mr. Soros about this new invention called dental floss?
#27

On October 25th, 2007 at 11:38 am, J S Ragman said:

#11 Jim M. said

The interred dems maintain an interest in the country post mortem, as evidenced by the exercise of their voting rights from the great beyond. Deceased republicans, on the other hand, do not show the same degree of dedication and interest in this great nation, remaining silent in the electoral process.

That would explain why Congress has not repealed the estate tax. It only benefits the wealthy deceased who can afford their own health care.
#28

On October 25th, 2007 at 11:39 am, BrianNY said:

Fun is fun, but let’s all remember to keep the good people of Tampa in our thoughts as the collective shame begins to set in, and they start taking down their formerly hallowed signs from Soros Stadium and WellCare Arena and MediaMatters Park and…oh, my bad…Soros doesn’t give to Red States…he takes.
#29

On October 25th, 2007 at 11:45 am, mike volpe said:

The more he is in the news, the more Americans will realize that he is the political Keyser Soze. Soon, the mainstream of the public will be on to his plans and his radical agenda. This latest bit should surprise no one given his insider trading beef in Europe.
#30

On October 25th, 2007 at 11:49 am, hunkahillbilly said:

“Seems stories have been floating around for a while about the company enrolling dead people and such…”

Wow! I guess they can use the experience while signing up folks at motor-voter sites, eh?
#31

On October 25th, 2007 at 11:50 am, pressto said:

I wonder if Media Matters will report on this story.
#32

On October 25th, 2007 at 11:54 am, terrig said:

Love the photoshop!
#33

On October 25th, 2007 at 11:56 am, willie peter said:

This is great news.

Above everything else previously noted regarding these crooks, they routinely stiffed healthcare providers by claiming that a specific service wasn’t covered.

They denied these claims after they collected their premiums from their subscribers and after receiving their Medicaid reimbursement from the Government for the same service they then claim wasn’t covered.

The Health Care providers know they’re being scammed but Medicaid rules are such that there isn’t a hell of a lot they can do about it.

These people are scumbags.
#34

On October 25th, 2007 at 12:01 pm, On-my-soap-box said:

On October 25th, 2007 at 11:02 am, Jim M. said:
Let’s not be so judgmental. After all, all those dead Democrat ic voters should have a fair chance at health insurance.

A friend corrected me the othere day and said there is no “democratic” in the democrat party. Just thought I would pass that along.

Welcome to George Soros’s America

Scarry thought of the day. Great thread Michelle. I did not know this about Soros. My eyes are opening.
#35

On October 25th, 2007 at 12:12 pm, Pulchritudinous Patriot said:

On October 25th, 2007 at 11:03 am, zmdavid said:
I’m surprised Medicare doesn’t cover people in the afterlife.

Give it a year or two in a Clinton administration, and they probably will.
#36

On October 25th, 2007 at 12:21 pm, nbarry said:

Will this bring down Soros? I’m not holding my breath. Like the nearsighted Mr. Magoo, he has a long history of obliviously walking away intact from the financial train wrecks he caused.
#37

On October 25th, 2007 at 1:05 pm, John Ansell said:

#35, Well the after life is voting in Chicago so they might get it.
#38

On October 25th, 2007 at 1:51 pm, cthelight said:

BrianNY
Thanks for the well wishes for Tampa…
actually, it is the TampaBay Area.
Those of us who STILL live here, get it.
We have been dumped on by the over-wealthy for a few years. We have been
ravaged by scams, mostly, real estate
scams. Try having to move 4 times in one year because of the real estate flips and sales. Try no jobs that pay a decent wage to afford the rentals. Try
just living here. Scams, yep, that is Florida. Try just finding a job that does not require bilingualism or that will hire a white or black real citizen of this country who has a legal social security number. Try living in apt. complex that hires latino types who get free rent, free healthcare just for doing landscaping and minimal maintenance. So just a little healthcare scam…add it to the list here in Florida.
#39

On October 25th, 2007 at 2:01 pm, AlohaGuy said:

Seems stories have been floating around for a while about the company enrolling dead people and such:

“Those idiots - I clearly said, ‘register dead people to vote and donate money to Hillary’, not for healthcare!”
#40

On October 25th, 2007 at 2:41 pm, Jonathan said:

GRANITE…I love your plain-talking, truth-hitting, fact-knowing, observations…I couldn’t agree with you more! It is just pathetic to have to sit back and watch it happen, because most of us haven’t the money, the time, or the power to stop it. God please fix this messed up World…and fast! Reminds me of ancient Rome, and we’ll probably go the way of ancient Rome; Sadly!
#41

On October 25th, 2007 at 2:44 pm, Jonathan said:

When I look at his photo, I see horns on his head, a forked-tongue, a barbed-tail, and an erie reddish glow…does anyone else see it?
#42

On October 25th, 2007 at 3:42 pm, granite said:

Re my #16:

Let me belatedly add that parents who are home raising the kids contribute an equal, critical share toward keeping the country running.

My apologies.
#43

On October 25th, 2007 at 4:40 pm, leepro said:

Oh, SH*T!!! Wellcare is my Medicare Part D insurer!!!

I’ve just gotten on Medicare this year, and it took my MBA-accountant/3rd-party-medical-payee-expert/loyal-husband and protector-of-me months to translate all the plans available and settle on this one!

Now, not only am I worried to death about my coverage, but I am also disgusted that anything in my life would even be remotely connected to that scum Soros. It even feels dirty to type that name.

Oh. My. God.
I am up you-know-what creek without a shovel.

>:-[
#44

On October 25th, 2007 at 4:42 pm, leepro said:

Sorry about double post. First one didn’t post, so “fixed” language a little and posted again. The first one is the way I really feel.
#45

On October 25th, 2007 at 6:16 pm, Boomer said:

We can only hope this is the beginning of the end for Soros and his attempted takeover of the United States. I am waiting for Moveon.org, Media Matters, and all his Democrat friends in Congress to come rushing to his aid.
#46

On October 25th, 2007 at 8:12 pm, scooter56 said:

Michelle, I love these post….I just can’t get enough baseless innuendo in my life.
So Soros invested but sold, worked at one time with someone, other frauds by others similar in same state…..But can you tie it to Kevin Bacon. This kind of crap puts me to sleep.
Aren’t you always stating how wonderful our for profit health care system is. I guess only Frist can profit.
#47

On October 26th, 2007 at 2:01 am, ScottyDog said:

On October 25th, 2007 at 11:20 am, BrianNY said:

Let me get this straight. UN Darling George Soros is now wanted Dead or Alive in France, Malaysia AND Florida? Quick George, better fire up the Millennium Falcon.

You forgot to include Russia where he would be shot on site for trying to manipulate the Russian ruble and bankrupt the Russian currency if he ever stepped off his private jet.

It just amazes me that our Government has provided a safe haven in the USA for this Criminal to operate even more scams on the American People.
#48

On November 12th, 2007 at 12:35 am, BrianNY said:

Found this over at Sweetness & Light:

Soros Advocacy Fellowship for Physicians

Between 1999 and 2004, the Open Society Institute operated the Soros Advocacy Fellowship for Physicians to support a cadre of physician advocates with expertise in achieving system or policy social change at the local, state, and national level.

Thirty-two fellows in thirteen states received fellowships to implement projects in partnership with advocacy organizations addressing issues such as Medicaid coverage and enrollment, health care access, pediatric oral health, environmental hazards, and high quality educational opportunities for young children.

It’s interesting to note that Soros seems to have worked both ends…hiring a team of doctors through “fellowships and grants” to pave the way for social/policy change.
Question: Did he throw his money around to better society…or to lobby for and enact policy that benefits his financial concerns like WellCare?
#49

On November 12th, 2007 at 12:45 am, BrianNY said:

Found this over at Sweetness & Light:

Soros Advocacy Fellowship for Physicians

Between 1999 and 2004, the Open Society Institute operated the Soros Advocacy Fellowship for Physicians to support a cadre of physician advocates with expertise in achieving system or policy social change at the local, state, and national level.

Thirty-two fellows in thirteen states received fellowships to implement projects in partnership with advocacy organizations addressing issues such as Medicaid coverage and enrollment, health care access, pediatric oral health, environmental hazards, and high quality educational opportunities for young children.

It’s interesting to note that Soros seems to have worked both ends…hiring a team of doctors through “fellowships” to pave the way for social/policy change.
Question: Did he throw his money around to better society…or to covertly enact policies that benefit his financial concerns like WellCare?