U.S. Justice Department Announces Record-Breaking Healthcare Fraud Takedown, Charges 324 Individuals

WASHINGTON D.C., July 1, 2025 – The U.S. Department of Justice today announced the results of a nationwide healthcare fraud enforcement operation, revealing that a total of 324 defendants have been criminally charged. This takedown represents the largest healthcare fraud scheme in U.S. history, involving approximately $14.6 billion (over 2 trillion Japanese Yen) in fraudulent claims submitted to Medicare, Medicaid, and other public healthcare programs.

According to the Justice Department's announcement, the 324 charged defendants include 96 medical professionals such as doctors, nurses, and pharmacists. This massive operation was conducted in collaboration with 50 federal districts nationwide and 12 state Attorneys General's offices, working alongside agencies like the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).

The fraud schemes uncovered were diverse, including billing for unnecessary medical services, false diagnoses, and fraudulent claims for expensive medical equipment. Some reports also indicated that the illicit activities included fraud related to “COVID vaccine scams.” Furthermore, as part of this enforcement operation, pharmacy networks that illegally distributed drugs to drug addicts and dealers, thereby exacerbating the severe opioid crisis in the U.S., were also dismantled.

Justice Department officials stated that “this large-scale operation marks the beginning of a new era in the fight against corruption within the U.S. healthcare system,” emphasizing the ongoing commitment to protecting taxpayers and patients from fraud. This takedown is notable for demonstrating the federal government's resolute stance against illicit activities in the healthcare sector.

The Context

Medicare and Medicaid are the two largest government healthcare programs in the United States. Medicare primarily provides health insurance for Americans aged 65 or older, younger people with certain disabilities, and people with End-Stage Renal Disease. Medicaid offers health coverage to low-income individuals and families. Both programs are susceptible to fraud, which diverts billions of dollars from legitimate patient care and burdens taxpayers.

The opioid crisis refers to the severe public health crisis in the U.S. caused by widespread misuse of opioid pain relievers, resulting in high rates of addiction and overdose deaths. Fraudulent prescriptions and illegal distribution of opioids by medical professionals or pharmacies have been a significant contributor to this crisis, leading to increased enforcement efforts by federal agencies like the DEA and Justice Department.