WASHINGTON – In a massive nationwide crackdown, federal and state prosecutors have charged over 320 individuals in connection with a record-setting health care fraud bust, exposing nearly $15 million in fraudulent claims and more than $2.9 billion in actual losses to U.S. health care programs.
Announced Monday, the coordinated effort is being hailed as the largest health care fraud takedown ever led by the U.S. Department of Justice. Authorities seized more than $245 million in assets, including cash, luxury vehicles, cryptocurrency, and other high-value items, many of which were linked to complex schemes orchestrated by global criminal networks.
The crackdown reveals a troubling new trend: the infiltration of America’s health care system by sophisticated international crime syndicates. According to investigators, perpetrators from countries such as Russia, Eastern Europe, and Pakistan played key roles in orchestrating the schemes.
“These aren’t just white-collar crimes. This is theft against the American public,” said Matthew Galeotti, head of the Justice Department’s criminal division. “Every false claim is money stripped away from the programs our citizens rely on—and those losses are borne by hardworking taxpayers.”
A Record-Setting Operation
The alleged fraud—estimated at $14.6 billion—has shattered prior records and includes charges filed in nearly 190 federal cases and over 90 state-level investigations since June 9. Nearly 100 licensed medical professionals, including 25 doctors, are among those facing charges.
Also Read – Nearly 12 Million May Lose Healthcare Under Trump’s Budget Proposal
One of the most elaborate schemes exposed in the operation involved a $10 billion fraudulent billing plan centered around urinary catheters. Dubbed Operation Gold Rush, the investigation revealed how a transnational organization secretly acquired dozens of medical equipment companies using foreign “straw” buyers. The group allegedly used stolen patient identities and confidential medical data to submit false Medicare claims on a massive scale.
International Network, Global Arrests
Nineteen individuals have been charged in connection with the catheter scheme. Arrests include four suspects apprehended in Estonia and another seven detained at U.S. airports and the U.S.-Mexico border. Authorities estimate that the personal information of more than one million Americans was misused in the scheme.
“This isn’t the work of amateurs,” said Dr. Mehmet Oz, Administrator of the Centers for Medicare and Medicaid Services. “These are highly organized operations, deliberately targeting the integrity of our nation’s health care programs.”
Growing Threat from Abroad
The Justice Department’s findings highlight a broader concern: the increasing role of transnational organized crime in exploiting health care systems for profit. Law enforcement officials emphasized the need for stronger international cooperation, better cybersecurity measures, and stricter oversight of medical billing and claims processing.
Officials warned that these schemes not only drain billions from government-funded programs like Medicare and Medicaid but also pose a direct threat to public trust in the health care system.
“This is a wake-up call,” Galeotti said. “We must remain vigilant and proactive to defend our system from those who see it as a target rather than a lifeline.”
