Fraudsters Looted This State for $4 Million – Now They are Facing Prison

Aug 04, 2026 1:15 PM
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Fraudsters Looted This State for $4 Million – Now They are Facing Prison
AP Photo/Matt Rourke

The Justice Department announced on Tuesday criminal charges against 19 defendants in Pennsylvania who are accused of participating in schemes to defraud the state’s Medicaid program.

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Assistant Attorney General Colin M. McDonald of the DOJ’s National Fraud Enforcement Division explained that the schemes “resulted in over $4 million of fraud” and that “18 of these defendants were charged in the last 12 days as part of a strategically coordinated law enforcement operation between the Fraud Division, the U.S. Attorney's Office, and the Pennsylvania Attorney General's Office.”

The cases today build on the work that we recently announced in Minnesota, where we charged 15 defendants for systematically looting 7 state-managed Medicaid programs out of more than $90 million, treating those programs like a piggy bank until one of them had to be shut down entirely because there was nothing left. The shelves were empty.

Fox News reported that the Justice Department is extending its operations to Philadelphia to target additional fraudsters.

The Justice Department announced Tuesday that it is expanding its Northeast Health Care Fraud Strike Force to Philadelphia as federal and state authorities target alleged Medicare and Medicaid fraud involving home health care services.

The expansion will establish a strike force office in the Eastern District of Pennsylvania and bring together the Justice Department’s National Fraud Enforcement Division and the U.S. Attorney’s Office for the district.

In connection with the announcement, federal and Pennsylvania authorities charged 19 defendants accused of participating in schemes involving more than $4 million in claims submitted to Medicare and Medicaid, according to a DOJ release obtained by Fox News. The defendants include home health care company owners, employees, purported aides and Medicaid recipients.

Pennsylvania Attorney General Dave Sunday also announced a plea agreement involving the final defendant in a previously charged 21-defendant case tied to more than $1.7 million in claims.

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The report also gave some details on how the alleged fraud worked:

The cases include allegations that home health aides billed Medicaid for services while they were incarcerated, hospitalized, working other jobs or traveling overseas. In another case, prosecutors said a Medicaid recipient claimed to require extensive home health assistance while also working as a carpenter.

Other defendants allegedly submitted overlapping or impossible work hours, including claims exceeding 24 hours of care in a single day, according to the release. One home health care agency and its owners were also charged with allegedly billing Medicaid for false clock-ins and clock-outs.

"The Strike Force’s expansion makes clear that the Fraud Division will use every available legal tool to identify, investigate, and prosecute offenses against the American people," the DOJ said.

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Government welfare programs across the United States, such as Medicaid and SNAP food benefits, have lost large sums of taxpayer money to fraud each year because of rampant fraud occurring in several states. A Government Accountability Office report found that the federal government loses between $233 billion and $521 billion annually to fraud overall.

According to the Department of Justice, a June 2026 health care fraud investigation resulted in charges for 455 defendants in schemes involving more than $6.5 billion in false claims, including a record number tied to Medicaid.

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News Topics DOJ | FOX NEWS | MEDICAID | PENNSYLVANIA
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