In a sweeping effort to combat medical fraud, the Department of Justice (DOJ) announced charges against 324 individuals this week, marking the largest healthcare fraud takedown in the history of the federal initiative. The operation revealed $14.6 billion in fraudulent activity and involved 96 licensed medical professionals across 50 federal districts and 12 state attorneys general offices nationwide.
According to FBI Director Kash Patel, the 2024 crackdown far surpassed previous years, uncovering over $13 billion in fraud. By comparison, the initiative identified $2.75 billion in 2024 and $2.5 billion in 2023. The DOJ said more than $245 million in assets—ranging from cash and luxury vehicles to cryptocurrency—were seized as part of the operation. The Centers for Medicare and Medicaid Services (CMS) also played a key role, blocking over $4 billion in fraudulent payments and revoking the billing privileges of 205 providers.
Much of the fraud centered around identity theft, telemedicine scams, and unnecessary medical procedures. One transnational criminal network alone accounted for a staggering $10.6 billion of the total fraud. This organization is accused of purchasing dozens of medical supply companies across the U.S., using the stolen identities of more than one million Americans to file fraudulent Medicare claims for urinary catheters and other durable medical equipment.
In one alarming development, the DOJ highlighted the role of artificial intelligence in enabling identity theft. Defendants allegedly used AI to fabricate voice recordings of Medicare beneficiaries appearing to consent to receiving medical products. These synthetic recordings were then sold to labs and suppliers, which used the data to submit false claims to Medicare. Although the government has recovered $44.7 million of the $418 million paid out through these schemes, the scale of the fraud underscores the challenge.
Additional defendants face charges for a range of scams, including amniotic wound graft schemes targeting elderly patients and schemes that funneled millions in kickbacks. Authorities emphasized the real-world harm of these crimes—patients subjected to medically unnecessary treatments or denied proper care, while public trust and taxpayer funds are eroded.
“This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. DOJ officials and law enforcement leaders reinforced their commitment to holding perpetrators accountable and safeguarding both patients and the financial integrity of healthcare programs.
