Justice Department Seizes $245 Million in Largest Health Care Fraud Crackdown Ever

State and federal prosecutors have charged over 320 individuals and uncovered nearly $15 billion in false claims in what they described as the largest coordinated takedown of health care fraud schemes in Justice Department history. Law enforcement seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets as prosecutors warned of a growing push by transnational criminal networks to exploit the U.S. health care system. As part of the sweeping crackdown, officials identified perpetrators based in Russia, Eastern Europe, Pakistan, and other countries.

Matthew Galeotti, who leads the Justice Department’s criminal division, emphasized the impact of these crimes on American taxpayers. “These criminals didn’t just steal someone else’s money. They stole from you,” he told reporters. “Every fraudulent claim, every fake billing, every kickback scheme represents money taken directly from the pockets of American taxpayers who fund these essential programs through their hard work and sacrifice.”

The alleged $14.6 billion in fraud is more than twice the previous record in the Justice Department’s annual health care fraud crackdown. It includes nearly 190 federal cases and more than 90 state cases that have been charged or unsealed since June 9. Nearly 100 licensed medical professionals were charged, including 25 doctors, and the government reported $2.9 billion in actual losses.

Among the cases is a $10 billion urinary catheter scheme that authorities say highlights the increasingly sophisticated methods used by transnational criminal organizations. Authorities say the group behind the scheme used foreign straw owners to secretly buy up dozens of medical supply companies and then used stolen identities and confidential health data to file fake Medicare claims. Nineteen defendants have been charged as part of that investigation — which authorities dubbed Operation Gold Rush — including four people arrested in Estonia and seven people arrested at U.S. airports and at the border with Mexico, prosecutors said. The scheme involved the stolen identities and personal information of more than one million Americans, according to the Justice Department.

Dr. Mehmet Oz, who leads the Centers for Medicare and Medicaid Services, described the operation as a coordinated effort by organized syndicates. “It’s not done by small time operators,” he said. “These are organized syndicates who are designing to hurt America.”

A transnational criminal network has been accused of exploiting the U.S. healthcare system, resulting in an alleged $14.6 billion in fraud. This figure is more than double the previous record set by the Justice Department's annual health care fraud crackdown. The scheme, dubbed "Operation Gold Rush," involved nearly 190 defendants and included a variety of fraudulent activities. The criminal network utilized foreign straw owners to covertly acquire dozens of medical supply companies. These companies were then used to submit over $12 billion in fraudulent claims to the U.S. healthcare system. The fraudulent claims were made possible through the use of stolen identities and other deceptive tactics. The group behind the scheme was able to evade detection by operating across international borders, making it difficult for authorities to track their activities.

The largest case unveiled in this operation involved over $10.6 billion in fraudulent Medicare claims for urinary catheters. The defendants in this case were charged with a range of offenses, including conspiracy to commit health care fraud, wire fraud, and money laundering. The investigation, which spanned multiple countries, resulted in the arrest of 19 defendants, including four individuals arrested in Estonia. The operation also involved the charging of 29 defendants for their roles in transnational criminal organizations. These organizations were alleged to have submitted over $12 billion in fraudulent claims to the U.S. healthcare system. The defendants charged in this operation included a mix of licensed medical professionals and other individuals involved in the scheme.

The total number of people charged in connection with the $14.6 billion in alleged healthcare fraud is 324, including 96 licensed medical professionals. The scale of this operation highlights the complexity and reach of transnational criminal networks, as well as the need for increased vigilance and cooperation between law enforcement agencies to combat such schemes. The investigation into this case is ongoing, and authorities continue to work to dismantle the criminal network and bring those responsible to justice.