DOJ Announces $1.8 Billion Health Care Fraud Takedown in Los Angeles Area

The Department of Justice on Thursday announced charges against 15 people in what officials described as a $1.8 billion health care fraud takedown centered in the Los Angeles area, one of the largest enforcement actions of its kind this year.

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At the center of the operation is an alleged $1.6 billion sham substance-abuse treatment scheme billed to private insurers, which prosecutors called the largest sober-home fraud case the DOJ has ever prosecuted. Six of those charged are medical professionals, according to the department’s announcement.

The takedown also includes charges related to $134 million in allegedly unnecessary Medicare artery procedures, a separate set of cases involving $138 million in hospice services billed for patients who were not terminally ill, and an additional $270 million Medi-Cal pharmacy case tied to the same enforcement sweep.

Authorities arrested eight defendants on the day of the announcement. All of those charged are presumed innocent unless and until proven guilty in court, and prosecutors emphasized that the investigation remains ongoing with the possibility of further charges.

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