DOJ Charges 324 Individuals in Historic $14.6 Billion Health Fraud Scheme
The Department of Justice (DOJ) has announced a meaningful crackdown on healthcare fraud, charging over 320 individuals involved in schemes that defrauded the federal government out of approximately $14.6 billion. This marks the largest coordinated healthcare fraud operation in DOJ history, as stated by Matthew Galeotti, head of the DOJ Criminal Division. He emphasized that these fraudulent activities rob taxpayers of thier hard-earned money and endanger essential healthcare programs for vulnerable populations.
The investigations revealed various elegant schemes, including one involving a transnational criminal organization that submitted $10.6 billion in false healthcare claims using the stolen identities of over a million Americans. Other schemes targeted Medicaid for addiction treatment services and involved unnecessary medical procedures on elderly patients.
The announcement highlights the significant threat organized crime poses to U.S. healthcare systems, prompting initiatives like the establishment of a fraud war room by the Centers for Medicare and Medicaid Services. Officials expressed commitment to combating fraud, ensuring justice for those who exploit vulnerable individuals and taxpayer-funded programs.
The Department of Justice announced charges against over 320 people on Monday in schemes involving false medical claims against the federal government.
DOJ Criminal Division Head Matthew Galeotti said that the “defendants also attempted to swindle Medicare and other taxpayer-funded and private health insurance programs out of about $14.6 billion,” Fox News reported.
The federal investigations marked the “largest coordinated healthcare fraud takedown in the history of the Department of Justice,” Galeotti said.
The $14.6 billion figure doubles the prior record of $6 billion in fraud uncovered and prosecuted annually in the past, the DOJ said in a news release.
“These criminals didn’t just steal someone else’s money. They stole from you,” Galeotti argued. “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.”
He added, “When criminals defraud these programs, they’re not just committing theft. They’re driving up our national deficit and threatening the long-term viability of healthcare for seniors, disabled Americans, and our most vulnerable citizens.”
“These criminals didn’t just steal someone else’s money. They stole from you.” – Matthew R. Galeotti, Head of @DOJCrimDiv
Today, we announced the largest Health Care Fraud takedown in history:
➡️ $14.6B IN FRAUD
➡️ 324 DEFENDANTS
➡️ 50 DISTRICTS ACROSS THE U.S. pic.twitter.com/aAva5j0II3— U.S. Department of Justice (@TheJusticeDept) June 30, 2025
Center for Medicare and Medicaid Services Administrator Dr. Mehmet Oz noted that the schemes are “not done by small-time operators.”
“These are organized syndicates who are designing to hurt America,” he said. “CMS is probably the largest target of all, responsible for about $1.7 trillion of disbursements. So it’s a big target on our side.”
The criminals get ID numbers from seniors and others, then use them to falsely bill the federal government, Oz explained.
He announced that CMS was setting up a fraud war room to combat those who would steal from these programs.
Dr. Oz says organized crime syndicates designing to hurt America are behind healthcare fraud schemes.
The DOJ announced the “largest coordinated healthcare fraud effort” in the agency’s history Monday, announcing charges against 300+ people.
FULL BRIEFING:… pic.twitter.com/NhTOWjLYab
— The National Desk (@TND) June 30, 2025
One of the schemes outlined in the DOJ’s news release involved at least 20 members of a transnational criminal organization.
The group purchased dozens of U.S. medical supply companies.
“They then rapidly submitted $10.6 billion in fraudulent health care claims to Medicare for urinary catheters and other durable medical equipment by exploiting the stolen identities of over one million Americans spanning all 50 states and using their confidential medical information to submit the fraudulent claims,” the DOJ said.
In another instance of alleged fraud, a defendant based in Pakistan and the United Arab Emirates allegedly “orchestrated a scheme to prey upon vulnerable individuals in need of addiction treatment by conspiring with treatment center owners to fraudulently bill Arizona Medicaid approximately $650 million for substance abuse treatment services.”
And in still another scheme, five medical professionals in Nevada and Arizona submitted $1.1 billion in fraudulent claims involving skin grafts to superficial wounds for vulnerable elderly patients, who did not need them, including some who were in hospice care.
Attorney General Pam Bondi said regarding the DOJ efforts, “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 added, “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.”
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