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FBI Says It's Uncovered Largest Medical Fraud in US History - Newsweek

  
Via:  Just Jim NC TttH  •  last year  •  21 comments

By:   Jenna Sundel (Newsweek)

FBI Says It's Uncovered Largest Medical Fraud in US History - Newsweek
Authorities seized $245 million in the investigation.

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Today's America


S E E D E D   C O N T E N T


Nearly $15 billion was reported in losses in the most expensive health care fraud in United States history, Federal Bureau of Investigation Deputy Director Dan Bongino said Monday.

"Today, in conjunction with the DOJ and our federal partners, we are announcing the results from the largest healthcare fraud investigation, as measured by financial losses, in DOJ history," Bongino posted on X, formerly Twitter.

Why It Matters


In all, 50 federal districts were part of the investigation, which resulted in 324 defendants, including 96 medical professionals, being charged, and the seizure of $245 million, according to Bongino.

Further information on the scope and subject of the investigation was not immediately available.

"We view the theft of public funds the same way. It's a crime against all of us...Results matter. Talk is cheap. And this is not even the beginning of the beginning. If you're stealing from the public, or violating your oath to serve, then we're coming for you too," Bongino said.

A seal reading "Department of Justice Federal Bureau of Investigation" displayed at the FBI headquarters in Washington, D.C.A seal reading "Department of Justice Federal Bureau of Investigation" displayed at the FBI headquarters in Washington, D.C.Photo by STEFANI REYNOLDS/AFP via Getty Images

What To Know


Matthew Galeotti, head of the Criminal Division at the Department of Justice, said approximately $14.6 million was submitted in false claims to Medicare, Medicaid and other health care programs.

"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," Galeotti said at a press conference.

Galeotti said these schemes can increase the national deficit and threaten the long-term viability of health care for seniors, individuals with disabilities and other citizens who need these programs.

Luxury vehicles and properties were also seized, Galeotti said. The DOJ identified and charged defendants operating from Russia, Pakistan and other foreign countries.

Galeotti said one example of what the investigation uncovered was a scheme involving an operation by individuals from Russia and Eastern Europe who purchased dozens of medical supply companies in the U.S. and submitted more than $10 billion in fraudulent health care claims to Medicare.

He said the perpetrators used the stolen identities of more than 1 million Americans in all 50 states. Key members of the organization were arrested by federal agents at U.S. airports and the U.S.-Mexico border.

"We charged pill mill operators who prescribed unnecessary opioids," Galeotti said. "We dismantled networks of corrupt pharmacies that existed solely to distribute drugs to addicts and dealers, feeding the addiction crisis that has devastated so many American communities."

What People Are Saying


Matthew Galeotti, head of the Criminal Division at the DOJ, at a press conference: "The days of transnational criminal organizations using the American healthcare programs as their personal piggy bank are over."

Acting Inspector General Juliet T. Hodgkins, at a press conference: "The results announced today were only possible through a strong partnership of federal and state agencies. By working shoulder to shoulder, we harness the best information, tools, and expertise to find criminals no matter where they hide and no matter how they try to disguise their crimes."

What Happens Next


The DOJ said it is collaborating with several federal agencies, including the FBI and the Department of Health and Human Services, to create a health care data fusion center to "revolutionize" the detection, investigation and prosecution of health care fraud.

Update 6/30/25, 1:11 p.m. ET: This article was updated with additional information.


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Just Jim NC TttH
Professor Expert
1  seeder  Just Jim NC TttH    last year

CAUGHT! New farmer in the henhouse.

 
 
 
George
PhD Expert
1.1  George  replied to  Just Jim NC TttH @1    last year

Nice, now prosecute them!

 
 
 
Dismayed Patriot
Professor Quiet
1.2  Dismayed Patriot  replied to  Just Jim NC TttH @1    last year
CAUGHT! New farmer in the henhouse.

So, all this fraud only started up in 2021? Oh, that's right, it's politically inconvenient for some to point out the 'farmer' who was running things for years before 2021 when much of this fraud was no doubt occurring apparently did nothing about it back then but now wants to saddle the immediate predecessor with all blame. Perhaps we can blame Biden for people who cheated on their taxes too, or for the fraud that happens in the insurance industry, or for any fires, flooding, high winds, low winds, hot spells, cold spells or the fact that my local Costco ran out of paper towels and it took two days to get more in. Damn you Brandon!!! /s

 
 
 
Jeremy Retired in NC
Professor Guide
1.2.1  Jeremy Retired in NC  replied to  Dismayed Patriot @1.2    last year
it's politically inconvenient for some to point out the 'farmer' who was running things for years before 2021 when much of this fraud was no doubt occurring apparently did nothing about it back then but now wants to saddle the immediate predecessor with all blame

The problem with your little hissy fit is the last administration was a little too busy the last 4 years covering for the incompetence of what they put in office. We can't forget about all the fictitious claims that were pulled out of the air and "investigated" against their opposition.  It's amazing what can happen with real investigations are done into REAL crimes.

 
 
 
Jack_TX
Professor Quiet
1.2.2  Jack_TX  replied to  Jeremy Retired in NC @1.2.1    last year
It's amazing what can happen with real investigations are done into REAL crimes.

Well... about that.....

The investigation took place in 2023 and 2024.

That's not to credit Biden, he was obviously clueless. 

It IS to credit the solid people at the FBI and other agencies who just go about their job regardless of who lives in the WH.  

 
 
 
Split Personality
Professor Participates
1.2.3  Split Personality  replied to  Jack_TX @1.2.2    last year

Of course some people will easily forget the frustration of politics and pardons.

While now Senator Rick Scott was CEO of Columbia...

In 2000, Columbia/HCA agreed to more than $840 million in criminal fines and damages over unlawful billing practices, according to a press   release   from the   Department of Justice   (DOJ). The company later faced an additional $881 million fine in   2002 , bringing its total settlement to $1.7 billion.
"While Rick Scott was CEO of Columbia/HCA Hospital, he oversaw the biggest Medicare fraud in US history and was fined $1.7 billion, which was the largest healthcare fraud fine ever levied by the DOJ," tweeted political commentator Brian Tyler Cohen  in response to Scott's post. Rick Scott's Connection to Massive Medicare Fraud Scandal Resurfaces - Newsweek
Somehow Rick Scott managed to run for and become Governor of Florida not once but twice and is now their senior Senator.
Mr. Trump recently trashed years of investigations and stings against Lawrence Duran,

Lawrence Duran — the former co-owner of American Therapeutic Corp., a Miami-based company that ran seven healthcare clinics between South Florida and Orlando — pleaded guilty in May 2011 to multiple felonies, including defrauding Medicare, healthcare fraud and money laundering.

Duran and his girlfriend, Marianella Valera, the co-owner of the company and one of its therapists, filed 866,000 false claims with Medicare and received more than $87 million from their scheme, according to court records. Their case was part of a much larger probe that included 22 other defendants, including senior company employees, psychiatrists and patient recruiters. In all, the scheme involved $200 million in false billings. At the time, it was the nation’s largest Medicare therapy rip-off scam in history.

Read more at:

Read more at:

Duran avoided a 50 year jail sentence and repayment of $87million in restitution. Katherin Levitt, press secretary extraordinaire, suggested that Trump saved the taxpayer the cost of jailing Duran. jrSmiley_98_smiley_image.gif

So maybe the hoopla rings just a little bit hollow?

 
 
 
Jack_TX
Professor Quiet
1.2.4  Jack_TX  replied to  Split Personality @1.2.3    last year
So maybe the hoopla rings just a little bit hollow?

I studied too much math to believe hoopla.

The reality is that they need to be closing one of these $15 billion cases every 30 days to be able to make a serious claim that they're tackling the problem.

 
 
 
Jeremy Retired in NC
Professor Guide
2  Jeremy Retired in NC    last year

[deleted][✘]

 
 
 
Split Personality
Professor Participates
3  Split Personality    last year
Nearly $15 billion was reported in losses in the most expensive health care fraud in United States history, Federal Bureau of Investigation Deputy Director Dan Bongino said Monday.

Sounds like a dozen separate operations put under one news conference as a deflection for the Administration.

Matthew Galeotti, head of the Criminal Division at the Department of Justice, said approximately $14.6 million was submitted in false claims to Medicare, Medicaid and other health care programs.

$14.6M is nothing statistically compared to the US budget.  So many claims are routinely denied and resubmitted it's mind numbing and getting worse with an aging population. Medical Claim Denial Statistics & Facts 2025 | Advisement.com

Galeotti said one example of what the investigation uncovered was a scheme involving an operation by individuals from Russia and Eastern Europe who purchased dozens of medical supply companies in the U.S. and submitted more than $10 billion in fraudulent health care claims to Medicare.

Easy enough, restrict ownership to citizens.  We know Russians will never stop trying to steal from us or undermine us in any way possible. No regime change will change that problem either.

"We charged pill mill operators who prescribed unnecessary opioids," Galeotti said. "We dismantled networks of corrupt pharmacies that existed solely to distribute drugs to addicts and dealers, feeding the addiction crisis that has devastated so many American communities."

Good.  Lets see how many are convicted.

Matthew Galeotti, head of the Criminal Division at the DOJ, at a press conference:   "The days of transnational criminal organizations using the American healthcare programs as their personal piggy bank are over."

How naive is this stupid ass? 

Acting Inspector General Juliet T. Hodgkins, at a press conference:   "The results announced today were only possible through a strong partnership of federal and state agencies. By working shoulder to shoulder, we harness the best information, tools, and expertise to find criminals no matter where they hide and no matter how they try to disguise their crimes."

Textbook delivery.

 
 
 
Sparty On
Professor Guide
3.1  Sparty On  replied to  Split Personality @3    last year
$14.6M is nothing statistically compared to the US budget.

Classic.    

There are many many places in the US budget 14.6 million would do a world of good but hey.    It’s nothing statistically speaking right?

 
 
 
Just Jim NC TttH
Professor Expert
3.1.1  seeder  Just Jim NC TttH  replied to  Sparty On @3.1    last year

Not to mention the actual number of $14.6 BILLION not million.........

 
 
 
Split Personality
Professor Participates
3.1.2  Split Personality  replied to  Sparty On @3.1    last year

Cherry picking the statement and ignoring the rest of the comment and supporting link, but hey, its nothing new, right?

Classic.

 
 
 
Split Personality
Professor Participates
3.1.3  Split Personality  replied to  Just Jim NC TttH @3.1.1    last year

Read the articles and links? Lot's of confusing numbers in there...like the part where the system worked better in one phase where only $41 million was fraudulently delivered out of $10Billion ordered because the current system caught  99.9959% of the frauds which is simply amazing for a government program; the difference being that this time it was a small group of Russians being charged in absentia and will never likely be caught or jailed.  They just lost a lot of assets.  

 
 
 
Greg Jones
Professor Participates
3.2  Greg Jones  replied to  Split Personality @3    last year

Looks like this was ignored by the Biden administration.

 
 
 
Split Personality
Professor Participates
3.2.1  Split Personality  replied to  Greg Jones @3.2    last year

The investigation known as "Operation Gold Rush" started in February of 2023 and made public in 2024 as a result of a CBS special report.  Patel couldn't find an office to work out of for months; if you think these political appointees could coordinate the departments they are shredding, defunding and shrinking for a massive joint task force to produce results in less than 4 months, I have beach front property I would like to sell you.

US federal agents launched  Operation Gold Rush  in the early months of 2023, a top-secret crackdown that would ultimately dismantle the largest  health care fraud  scheme in American history. Over two years of silent tracking and coordinated stings culminated in the exposure of a $10.6 billion conspiracy, one so vast that it touched over a million  Medicare  beneficiaries, impersonated thousands of doctors, and manipulated America’s largest health care safety net with chilling efficiency.

Nineteen individuals have been charged, and more are expected. But the real legacy of Operation  Gold Rush  may be its playbook for how the government stopped  fraud  in its tracks, before the damage was done.
How Operation Gold Rush was planned and executed, which busted the largest health care fraud in US history - The Economic Times

Who was POTUS in 2023 Greg?

 
 
 
Vic Eldred
Professor Principal
3.2.2  Vic Eldred  replied to  Split Personality @3.2.1    last year

That is a great question

 Many are still trying to find out. I may have something on this tomorrow 

 
 
 
Jack_TX
Professor Quiet
3.3  Jack_TX  replied to  Split Personality @3    last year
$14.6M is nothing statistically compared to the US budget.

True, but I think he misspoke.  The number is somewhere between $10-$15 billion.

Easy enough, restrict ownership to citizens. 

I don't think that's a bad idea, but it's not easy.

How naive is this stupid ass? 

It would seem somewhere between "extremely" and "astonishingly".   

Let's face it, the GAO has been telling us for a decade that Medicare and Medicaid lose somewhere between 10-25% of total spend on fraud, waste, or error.  That's somewhere between $178 billion and $450 billion every year.  This was a 2 year sting, covering God knows how many years of fraudulent activity.  So the idea that they've somehow stopped all of this activity is hilarious.

Ol' boy killed one mosquito and thinks that will scare the rest of them off.

 
 
 
Dismayed Patriot
Professor Quiet
3.4  Dismayed Patriot  replied to  Split Personality @3    last year

What's silly is that every administration has run departments that worked on Medicare oversight, identifying fraud and rooting out bad actors in the healthcare system which is rife with problems. But here we have conservatives acting like this is all new news and is all Democrats fault which would be hilarious if I didn't actually think they were stupid enough to actually believe that laughable horseshit.

While overall, the fraud is relatively small in comparison to the tens of billions it costs to provide health care for tens of millions of Americans, it's great that some of the oversight is helping cut the fraud and waste we all knew existed. The problem is that conservative will attack it as if the fraud outweighs the benefits to tens of millions of Americans who need and couldn't survive without Medicare. Conservatives have always seen Medicare as a "socialist" program and have been looking to slit its throat for decades.

This propaganda story of the self-righteous dickwad conservatives now claiming they found all this supposedly "new" fraud when this shit's been being confronted for decades and is an ongoing process as new fraud schemes arise, is just another attempt to undermine a successful social program they are ideologically opposed to. They will never admit or focus on the success stories of Medicare, all the millions of lives it's saved through the years and the better quality of life our seniors have been able to enjoy all because of this "socialist" program. No, they need to focus on any fraud found and make it sound as if the entire program is broken beyond repair even though the fraud is such a small fraction when you compare the amount spent on needed programs and healthcare.

 
 
 
freepress
Freshman Silent
4  freepress    last year

Russia? Well don't count on sanctions for them, they will get pardoned like the Capitol rioters or the case will be dropped. All of "daddy's" favorites especially criminals get pardons or special treatment. Remember "russia, russia, russia" was a hoax.

 
 
 
Greg Jones
Professor Participates
4.1  Greg Jones  replied to  freepress @4    last year

The hoax was Putin-Trump collusion, which never happened.

 
 
 
bugsy
Professor Participates
4.1.1  bugsy  replied to  Greg Jones @4.1    last year

But they are still told it was real……

And swallow it hook, line and sinker.

 
 

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