The Department of Justice (DOJ) has announced criminal charges against 324 individuals across 50 federal districts in what officials are calling the largest healthcare fraud enforcement action in U.S. history.
This sweeping operation uncovered more than $14.6 billion in alleged fraudulent billings targeting federal healthcare programs and private insurers, marking a historic crackdown on illegal activity within the healthcare sector.
Among those charged are 96 medical professionals, including doctors, nurses and other licensed providers.
Investigators revealed that many defendants exploited telemedicine services, COVID-19 relief programs and addiction treatment centers for personal financial gain.
The fraudulent schemes uncovered were varied and complex—ranging from issuing medically unnecessary prescriptions to billing for services that were never provided to patients.
Attorney General Pam Bondi emphasized the importance of the takedown.
“This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” she said in a statement.
“Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.”
FBI Director Kash Patel echoed Bondi’s remarks, describing the crackdown as the most extensive healthcare fraud takedown in U.S. history.
He highlighted the bureau’s strong collaboration with federal and state partners in uncovering and dismantling elaborate fraud networks targeting the nation’s healthcare system.
As part of the investigation, authorities seized more than $245 million in cash, luxury vehicles, jewelry, real estate and other assets tied to the alleged fraud.
The defendants face a variety of charges, including healthcare fraud, wire fraud, kickback schemes and illegal distribution of controlled substances.
Telemedicine fraud was a major focus of the takedown.
In many cases, defendants paid doctors to approve prescriptions and durable medical equipment without any direct patient interaction.
For example, a Florida provider allegedly billed Medicare for nearly $3 million in telehealth consultations that never occurred, according to a DOJ press release.
In other states, pharmacy owners were accused of exchanging opioid prescriptions for cash while submitting fraudulent claims to Medicaid.
Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz stressed the impact of preventing fraud.
“Every dollar we prevent from going to fraudsters is a dollar that stays in the system to serve legitimate beneficiaries,” he said. “Through advanced data analytics, real-time monitoring, and swift administrative action, CMS is leading the fight to protect Medicare, Medicaid, and the trust Americans place in these vital programs.”
“We’re not waiting for fraud to happen—we’re stopping it before it starts.”
Alongside criminal prosecutions, CMS took administrative action against over 200 healthcare providers by suspending or revoking their billing privileges.
This effort has halted more than $4 billion in fraudulent claims from being paid.
Civil complaints were filed in 20 cases, and another 106 defendants agreed to pay a combined $34.3 million to resolve allegations.
Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. reaffirmed the department’s commitment to aggressively combatting healthcare fraud.
He noted that under the previous administration, pervasive fraud had burdened the agency and contributed significantly to rising healthcare costs.
“As part of making healthcare accessible and affordable to all Americans, HHS will aggressively work with our law enforcement partners to eliminate the pervasive health care fraud that bedeviled this agency under the former administration and drove up costs,” he said.
Federal authorities warned that additional charges could be forthcoming as investigations continue to uncover further fraudulent activity, emphasizing that the fight against healthcare fraud remains ongoing.
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Author: Gloriel Howard
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