DOJ takes down more than $14 billion worth of health care fraud schemes


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Summary

Nationwide fraud bust

A nationwide initiative called the '2025 National Health Care Fraud Takedown' resulted in charges against 324 individuals, including nearly 100 medical professionals, for their alleged involvement in health care fraud worth $14.6 billion in intended losses.

Financial and asset seizures

The Justice Department states that law enforcement was able to seize $245 million in assets, including cash, luxury vehicles, and cryptocurrency.

Opioid and prescription fraud

44 licensed medical professionals were charged with distributing more than 15 million prescription opioid pills, including oxycodone and hydrocodone, which were then trafficked by street-level dealers.


Full story

The Justice Department says it has halted various health care schemes across the country involving $14.6 billion in intended loss. In a statement released Monday, June 30, the DOJ says 324 people now face charges, including more than 90 medical professionals.

2025 National Health Care Fraud Takedown

The department calls the bust the “2025 National Health Care Fraud Takedown.” It involved 50 federal districts and 12 state attorneys general’s offices.

They say the investigation helped law enforcement seize $245 million in cash, luxury vehicles, cryptocurrency and other assets.

“The Criminal Division is intensely committed to rooting out health care fraud schemes and prosecuting the criminals who perpetrate them because these schemes: (1) often result in physical patient harm through medically unnecessary treatments or failure to provide the correct treatments; (2) contribute to our nationwide opioid epidemic and exacerbate controlled substance addiction; and (3) do all of that while stealing money hardworking Americans contribute to pay for the care of their elders and other vulnerable citizens,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division.

The Centers for Medicare and Medicaid Services also says it successfully prevented more than $4 billion from being paid out to fraudulent claims and suspended or revoked billing privileges for 20 providers.       

The different schemes busted by the DOJ range from transnational criminal organizations to fraudulent claims and prescription opioid trafficking.

Operation Gold Rush

Among those schemes is Operation Gold Rush, a $10.6 billion fraud scheme.

The operation uncovered a plan to purchase more than 30 health care supply companies already enrolled in Medicare. Officials say conspirators then used those companies to submit a flood of claims for medical equipment, including one billion urinary catheters.

“I don’t even know if [the United States] has the ability to manufacture 1 billion catheters in such a short time,” Isaac Bledsoe, director of strategic projects and initiatives at the Department of Health and Human Services inspector general’s office, said to the Washington Post. “The absurdity, the brazenness of these actors is really just astounding.”

Those bills were even passed on to some customers, according to The Post, including 73-year-old Gerald Quindry, who says his statement showed his provider was billed for more than $15,000 worth of catheters that his doctor never ordered.

Prescription opioid trafficking

As the fallout continues from the ongoing opioid epidemic, the DOJ says 44 licensed medical professionals are among those charged with moving more than 15 million pills of prescription opioids.

The department says they were distributing oxycodone, hydrocodone and carisoprodol, which street-level dealers then trafficked.

“Today’s announcement shows that when doctors become drug dealers and treatment centers become profit-driven fraud rings, DEA will act,” said Acting Administrator Robert Murphy of the DEA. “We’re targeting the entire ecosystem of fraud — from pill mills in Texas to kickback clinics exploiting Native communities. If you abuse your medical license to push poison or pad your pockets, we will hold you accountable.”

Telemedicine schemes

The DOJ says 49 people face charges in connection with over $1.17 billion in fraudulent claims stemming from telemedicine and genetic testing fraud schemes. According to a recent study, 54% of Americans have now had a telemedicine visit.

The department gave an example of the owner of telemedicine and durable medical equipment companies in South Florida. That owner is charged with a $46 million scheme to target Medicare beneficiaries with deceptive telemarketing tactics to submit fraudulent claims.

“The scale of today’s Takedown is unprecedented, and so is the harm we’re confronting. Individuals who attempt to steal from the federal health care system and put vulnerable patients at risk will be held accountable,” said Acting Inspector General Juliet T. Hodgkins of Health and Human Services, Office of Inspector General.

Alex Delia (Deputy Managing Editor) and Joey Nunez (Video Editor) contributed to this report.
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Why this story matters

A major Justice Department operation has charged hundreds of individuals, including medical professionals, in widespread health care fraud schemes, highlighting efforts to protect public funds and ensure patient safety.

Health care fraud enforcement

The Justice Department's large-scale action across multiple states demonstrates ongoing efforts to detect and prosecute fraudulent activities in the health care sector, as stated by DOJ officials.

Impact on public resources and patient safety

According to the DOJ, these fraud schemes undermine the integrity of programs like Medicare, drain public funds, and can result in both financial loss and harm to patients by facilitating unnecessary or inappropriate medical care.

Opioid and telemedicine misuse

The charges related to prescription opioid distribution and telemedicine fraud reflect broader national challenges, with federal authorities noting that such activities contribute to the opioid crisis and waste billions in health care resources.

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Context corner

Health care fraud has been a persistent problem in the U.S. as federal health care funding and complex billing systems create opportunities for abuse. Past enforcement actions have escalated, but none matched this takedown’s international coordination and use of data analytics, reflecting evolving tactics by both criminals and authorities in the fight against systematic health care fraud.

History lesson

Health care fraud busts have occurred periodically, but the scale has grown with digitization and international criminal activity. Previous takedowns, such as those in 2010 and 2021, were smaller. Historical trends show that major enforcement efforts temporarily reduce fraudulent activity, but criminals often adapt, requiring continual innovation in enforcement strategies.

Policy impact

The crackdown is expected to prompt stricter regulations and more robust auditing in federal health care programs. Enhanced surveillance and data analytics may become a permanent fixture, and future policy adjustments could include tightening credentialing processes, increasing penalties, and providing additional resources for enforcement to ensure program integrity and protect vulnerable patients.

Bias comparison

  • Media outlets on the left primarily frames the $14.6 billion healthcare fraud takedown as a serious breach by transnational criminal syndicates “stealing from you,” emphasizing international identity theft and systemic exploitation of taxpayer-funded programs, thereby underscoring calls for stronger regulation.
  • Not enough unique coverage from media outlets in the center to provide a bias comparison.
  • Media outlets on the right highlight the mechanics of Medicare’s vulnerable reimbursement system, characterizing perpetrators as “greedy” criminals exploiting “easy targets,” and go further by crediting the “Trump DOJ” and stressing prescription opioid diversion schemes.

Media landscape

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Key points from the Left

  • More than 320 people have been charged in what the Justice Department described as the largest coordinated takedown of health care fraud schemes in its history, involving more than $14 million in false claims.
  • Law enforcement seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets during the crackdown on health care fraud schemes.
  • The alleged fraud involved nearly $14.6 billion, exceeding the Justice Department's previous record in health care fraud actions, with nearly 100 licensed medical professionals charged.
  • Authorities state that the group exploited the U.S. Health care system by using foreign straw owners to buy medical supply companies and filing fake Medicare claims using stolen identities.

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Key points from the Center

  • Charges were brought against 324 defendants for alleged involvement in healthcare fraud schemes, according to the Justice Department.
  • The claims involved approximately $14.6 billion in false billings submitted to Medicare and Medicaid.
  • The investigation covered 50 federal districts and revealed nearly $3 billion in false claims, as reported by Bongino.
  • Yost stated that billing for made-up services meets all criteria for fraud, waste, and abuse.

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Key points from the Right

  • Federal prosecutors announced the arrest of at least 324 people in a 2025 health care fraud operation connected to over $14.6 billion in intended losses.
  • The investigation, called Operation Gold Rush, revealed a conspiracy involving fraudulent claims for unnecessary medical supplies, including urinary catheters and glucose monitors.
  • The investigation involved multiple international defendants and uncovered over 1 billion false claims to Medicare.
  • Attorney General Pamela Bondi emphasized that this takedown reflects the administration's commitment to combat health care fraud and protect taxpayer resources.

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