The Trump administration’s Department of Justice announced this week the largest healthcare fraud takedown in U.S. history, charging 324 individuals in connection with a staggering $14.6 billion in fraudulent Medicare and Medicaid claims.
Among those charged were 96 licensed medical professionals operating across 50 federal districts and 12 state attorneys general offices. FBI Director Kash Patel called it the most significant bust to date under the DOJ’s national fraud initiative, surpassing the $2.75 billion identified in 2024 and $2.5 billion in 2023.
“The government seized more than $245 million in cash, cryptocurrency, luxury vehicles, and other assets,” according to the Justice Department.
In addition to criminal charges, the Centers for Medicare and Medicaid Services (CMS) confirmed it stopped over $4 billion in attempted fraudulent payouts and revoked or suspended the billing privileges of 205 providers in the months leading up to the operation. Civil penalties and settlements added another $48.5 million to the total.
The fraud schemes spanned identity theft, telemedicine scams, opioid trafficking, and unnecessary medical billing. One transnational criminal network alone accounted for $10.6 billion of the total, having acquired dozens of U.S.-based medical supply companies and used the stolen identities of over one million Americans to submit fake Medicare claims for urinary catheters and other equipment.
In another case, foreign actors employed artificial intelligence to generate fake audio recordings of Medicare patients purportedly consenting to receive medical products. The AI-generated data was then sold to laboratories and equipment companies, which submitted fraudulent claims using it. Of the $418 million paid out in that scheme, $44.7 million has been recovered so far.
Other scams involved unnecessary wound care treatments, such as billing Medicare for amniotic skin grafts for elderly patients in exchange for illegal kickbacks.
“These schemes don’t just waste taxpayer money—they hurt patients,” said Criminal Division Chief Matthew Galeotti. “This is money hardworking Americans contribute to care for the elderly and most vulnerable, not to fund scams and kickbacks.”
Attorney General Pamela Bondi emphasized the administration’s commitment to rooting out this corruption: “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. 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.”