DOJ: Record Healthcare Fraud Bust Totals $6.5 Billion

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The Justice Department on Tuesday announced it had charged 455 defendants for alleged healthcare fraud totaling more than $6.5 billion in what officials described as the largest health services fraud takedown in U.S. history.

The massive enforcement action targeted schemes involving Medicare, Medicaid, hospice care, wound treatment, opioid distribution, and genetic testing fraud.

"Fraudsters can no longer rip off American taxpayers," acting Deputy Attorney General Todd Blanche said while announcing the results of the 2026 National Health Care Fraud Takedown.

"If you seek to harm or cheat Americans, we will find you, seize any assets, and prosecute you to the fullest extent of the law," he added.

According to the DOJ, the operation involved federal and state authorities across 57 federal court districts and 41 states and territories.

Prosecutors charged approximately 90 medical professionals and seized more than $127 million in cash, luxury vehicles, jewelry, and other assets allegedly connected to fraudulent schemes.

The Wall Street Journal reported that more than 100 defendants were accused of submitting over $100 million in false Medicaid claims, marking a record number of Medicaid fraud cases in a single enforcement action.

Officials also unveiled new data-sharing agreements among federal agencies designed to identify fraud more quickly using advanced analytics and machine learning tools.

One of the most striking cases involved Los Angeles-area hospice operator Oren David Shachar.

Prosecutors allege Shachar paid kickbacks and enrolled patients who were not terminally ill into hospice programs, resulting in nearly $27.7 million in fraudulent Medicare claims.

Authorities further allege that deceased beneficiaries were enrolled after death using stolen personal information and falsified records. Shachar has pleaded not guilty.

FBI Director Kash Patel highlighted the administration's broader anti-fraud campaign, announcing that two new fugitives have been added to the FBI's Most Wanted Fraudster List after two others were recently apprehended.

Patel identified Khalid Ahmed Satary, wanted for his alleged role in a $547 million healthcare fraud conspiracy, and Emylee Thai, who was indicted in connection with an alleged genetic testing scheme that billed Medicare approximately $142 million and received roughly $95 million in payments. Both have been fugitives since 2022.

The takedown comes as the Trump administration intensifies its government-wide focus on fraud prevention.

Vice President JD Vance's Anti-Fraud Task Force has announced new oversight measures for Medicare and Medicaid programs, while the DOJ is accelerating reviews of whistleblower complaints involving taxpayer-funded benefit programs.

Administration officials say the message is clear: Taxpayer dollars are meant to help patients, not enrich fraudsters.

Charlie McCarthy

Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.

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