A nationwide crackdown has exposed what the Department of Justice is calling the largest health care fraud takedown in American history. Over 300 people are now facing charges in connection with medical scams that add up to more than $14 billion in alleged fraud. Among the 324 defendants are 96 licensed medical professionals, charged across 50 federal districts and 12 state attorney general offices.
The scale of the investigation is stunning — and it’s already raising questions about how these schemes went undetected for so long.
🚨BREAKING: DOJ is now charging 324 people for healthcare fraud.
The fraud totals $14.6 BILLION in false claims to Medicaid, Medicare, & other healthcare programs. pic.twitter.com/hMJGdgNOeM
— Derrick Evans (@DerrickEvans4WV) July 1, 2025
According to the FBI, the 2024 sweep uncovered more than $13 billion in fraud, nearly five times what was identified just a year earlier. In 2023, the total was $2.5 billion. Last year saw $2.75 billion. But this year’s number shattered records — largely because of one case that shocked even longtime investigators.
That case involves a transnational criminal organization that allegedly pulled off more than $10 billion worth of fraud on its own. Prosecutors say the group bought dozens of medical supply companies scattered across the United States. Then, using the stolen identities of over a million Americans, they filed fake Medicare claims for durable medical equipment like urinary catheters — equipment that was never ordered, never delivered, and never needed.
In another major case, criminals reportedly used artificial intelligence to steal identities. According to the Department of Justice, the group generated fake voice recordings of real Medicare patients, making it sound like they were giving permission to receive certain products. Those recordings were sold to labs and supply companies, which then used the audio as proof to file false claims. The government has recovered just under $45 million of the $418 million that was paid out on those claims.
Massive Medicare & Medicaid fraud in Virginia announced by DOJ – billions in fraud, and many in VA 🧵 pic.twitter.com/sCvqtRic2X
— NOVA Campaigns (@NoVA_Campaigns) July 1, 2025
Other schemes involved opioid trafficking, fake telemedicine visits, and amniotic wound grafts billed to Medicare under the names of elderly patients. In some of these cases, medical professionals allegedly received kickbacks in exchange for prescribing unnecessary treatments — putting vulnerable people at serious physical risk.
Federal officials have seized over $245 million in assets linked to the schemes, including cash, luxury vehicles, cryptocurrency, and other valuables. Civil settlements have reached nearly $50 million, and more charges are expected as the investigations continue.
The Centers for Medicare and Medicaid Services also took action. In the months leading up to the sweep, they stopped more than $4 billion in payments from going out and suspended or revoked billing privileges from over 200 providers.
Justice Department leaders emphasized the impact of these crimes on both the healthcare system and ordinary Americans. Criminal Division Chief Matthew R. Galeotti said the schemes not only cheated taxpayers, but harmed real patients. “They often result in physical patient harm through medically unnecessary treatments,” he said. “This is money hardworking Americans contribute to pay for the care of their elders and other vulnerable citizens.”
FBI & DOJ TAKEDOWN LARGEST HEALTH CARE FRAUD SCHEME IN U.S. HISTORY WHILE DEMOCRATS CHANGE 236-YEAR-OLD LAW TO KEEP ILLEGALS ON MEDICAID. Matthew Galeotti, head of the Criminal Division at the Department of Justice, said approximately $14.6 billion was submitted in false claims… pic.twitter.com/vBO5fqXjTG
— The SCIF (@TheIntelSCIF) July 1, 2025
Attorney General Pamela Bondi echoed that point. “This record-setting health care fraud takedown delivers justice to criminal actors who prey upon our most vulnerable citizens,” she said. “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.”
While the government’s swift response has led to hundreds of charges, the cases reveal just how sophisticated and far-reaching modern fraud schemes have become — especially with technology now playing a key role in identity theft.
And as officials begin to investigate what allowed billions to slip through the cracks, one question still hangs in the air…
What else hasn’t been caught yet?
