The Department of Justice on Tuesday unveiled the results of the 2026 National Health Care Fraud Takedown, which resulted in criminal and civil charges against hundreds of defendants and billions in allegedly stolen taxpayer funds.
The enforcement effort involved 56 federal districts, 45 U.S. states and territories, and 455 defendants, including 90 doctors and other medical professionals, tied to more than $6.5 billion in alleged fraud.
'The government seized over $30 million in bank accounts, a $594,000 Ferrari 296 GTS, seven other high-end vehicles, an $865,000 custom Bulgari necklace, and $1 million worth of other luxury jewelry.'
The DOJ accused the defendants of participating in numerous schemes, including opioid abuse, submitting false claims to Medicare and Medicaid, and causing patient harm, including death. The department also claimed that 10.7 million pills of controlled substances were illegally distributed.
The alleged stolen taxpayer funds were used to purchase high-end vehicles, jewelry, and real estate, among other luxury items. The federal government has seized $182 million in cash and other assets.
“This announcement marks the greatest combined federal and state effort in combating health care fraud in history,” acting Attorney General Todd Blanche stated. “This team is working tirelessly to take down fraudsters who steal from taxpayer funded programs and prey on vulnerable Americans.”
The DOJ highlighted that charges were filed against 11 individuals allegedly tied to billions of dollars in fraudulent claims for amniotic wound allografts, a wound treatment made from donated placental tissue typically used to repair hard-to-heal injuries.
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Image source: Department of Justice
In the District of Arizona, the vice president of sales for a company was charged in an alleged kickback scheme after providers allegedly billed Medicare over $4 billion from Dec. 2021 to June 2024 for his company’s allografts.
“The company did not manufacture allografts and instead acquired allografts from tissue banks and relabeled them for sale at a 2,000% mark-up, charging up to $1,450 per square centimeter,” the DOJ stated.
The defendant and others allegedly targeted hospice patients to apply allografts to superficial wounds and treat areas that exceeded the size of the wound.
The defendant was accused of receiving $24 million from the company and spending the funds on “multi-million-dollar houses, million-dollar life insurance policies, luxury vehicles, including a $135,000 Maserati, and luxury watches.”
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In the Southern District of Texas, the DOJ also charged a nurse practitioner who allegedly billed Medicare $906 million for medically unnecessary allografts.
“As alleged, the defendant used the fraud proceeds to purchase high-end vehicles, real estate, and luxury jewelry, and to fund the construction of a $4.6 million ... beach resort in the Philippines,” the DOJ stated. “The government seized over $30 million in bank accounts, a $594,000 Ferrari 296 GTS, seven other high-end vehicles, an $865,000 custom Bulgari necklace, and $1 million worth of other luxury jewelry.”
The DOJ reported that Medicare claims for allografts skyrocketed from $1.2 billion in 2022 to $14.4 billion in 2025.
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