T he federal net is widening. After wheeling and dealing through tens of millions of dollars in alleged fraudulent medical billing during their short marriage, Scottsdale couple Alexandra Gehrke, 38, and Jeffrey King, 49, reached deals with the government for reduced sentences – sparing them from potentially spending the rest of their lives in prison. Gehrke, a medical entrepreneur with fashion model looks, and King, a music producer with a taste for expensive watches and fast cars, remain in separate cells at Florence Correctional Center, 60 miles from the $5.7 million Scottsdale home that was seized by the government. On June 17, four months after they married in a glitzy ceremony, the two were handcuffed as they attempted to board a plane to France. In January, King changed his plea from not guilty to guilty, following his bride, who entered a plea of guilty in return for reduced charges. Gehrke – known to friends and associates as “Lexie” – and King allegedly filed $900 million in fraudulent medical bills, pocketing $330 million “in illegal kickbacks as a result of their fraudulent scheme,” according to charging documents. In addition to property and high-end cars, the government seized $60 million in cash – adding the two “have access to potentially tens of millions of dollars” in cryptocurrency and hidden accounts. Shortly after the Scottsdale couple apparently reached plea deals, Daylon Bennett was charged with conspiracy to commit health care fraud and “conspiracy to defraud the United States and to solicit and receive kickbacks.” According to charging documents, Bennett, a Phoenix resident, received just under $18 million “in illegal kickbacks” from Gehrke and her companies. Bennett allegedly took part in Gehrke and King’s Medicare fraud scheme, ordering grafts for elderly nursing home residents who did not need them. “Medicare reimbursed claims for allografts distributed by (Gehrke’s company) at an extremely high rate, exceeding $1,000 per square centimeter for certain allografts,” according to Bennett’s charging document. The scheme also allegedly filed fraudulent claims with the federal TRICARE insurance fund and private insurance companies. As director of sales of the Gehrke-King companies Viking and APX, “Bennett referred the patients that he identified to Jeffrey King and APX, who contracted with nurse practitioners to apply the allografts that Bennett ordered.” Bennett, who also trained sales reps for Gehrke and King, most recently cashed a $2.1 million check from Gehrke in March 2024. King’s agreement, submitted Jan. 31, has him agreeing to plead guilty to one charge of conspiracy to commit health care fraud. Three months earlier, Gehrke reached a nearly identical deal. While the bundle of charges against them could have locked up the former glam couple for the rest of their lives, the maximum sentence under their agreements is 20 years each. Gehrke is scheduled to be sentenced Aug. 12. A sentencing hearing for King has not yet been scheduled. The two will have to work hard upon his release from federal prison, as they agree to pay back over $600 million to insurance providers.
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