U.S. Justice Department fraud division highlights nearly $1 billion in enforcement actions

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U.S. Department of Justice announced nearly $1 billion in nationwide fraud enforcement actions spanning Medicare, Medicaid, tax, and benefits fraud cases in 2024.
Major sentences include 151 months for submitting over $522 million in false claims for genetic testing and 16 years for defrauding Medicare and CHAMPVA out of nearly $200 million.
The new National Fraud Enforcement Division, announced April 7, sharpens scrutiny on health care, public benefits, and financial crimes, signaling increased federal oversight and prosecutions.

Nationwide cases span benefits, health care and tax fraud

As reported by the U.S. Department of Justice, the division says it is continuing to widen its enforcement effort, with prosecutors and law enforcement partners pursuing cases ranging from Medicare fraud to stolen Treasury checks.

On Monday alone, two men were sentenced to 151 months and 36 months in prison for their roles in submitting more than $522 million in fraudulent claims for medically unnecessary genetic tests in a scheme involving Medicare, Medicaid and private insurers. Assistant Attorney General Colin McDonald says the division is growing its footprint and is aggressively prosecuting fraud schemes of all sizes.

Other benefits-related cases include a 144-month prison sentence in Pennsylvania tied to $59 million in fraudulently obtained public benefits that were laundered to China. In Florida, a defendant pleaded guilty to receiving about $250,000 in stolen U.S. Department of Veterans Affairs disability compensation after falsely claiming legal blindness, while in Michigan another defendant pleaded guilty in a federal student loan fraud scheme that caused more than $16 million in awards, with more than $10 million disbursed.

Health care enforcement actions also remain a major focus. A former NFL player was sentenced to more than 16 years in prison for a conspiracy that defrauded Medicare and the Civilian Health and Medical Program of the Department of Veterans Affairs out of nearly $200 million, with more than $110 million in restitution and about $17 million in forfeitures ordered. Additional cases include guilty pleas in Tennessee and Michigan over schemes involving $6.9 million in false Medicare claims, $5.6 million in fraudulent billing and illegal oxycodone distribution, and a 20-month prison sentence in Oklahoma City over a $1.1 million private insurance fraud scheme.

Tax and government fraud cases add to the total. Four defendants, including two former U.S. Postal Service employees, pleaded guilty in a conspiracy to steal $84 million in U.S. Treasury checks, while cases in Florida and California involve false tax filings and fraudulent CARES Act and Paycheck Protection Program loan applications worth millions of dollars. In Jacksonville, Florida, two defendants were sentenced over a $148 million construction payroll scheme that caused the U.S. Treasury to lose more than $37 million in unpaid payroll taxes.

Fraud division expansion sharpens focus on federal losses

Financial fraud cases are also moving forward through indictment. A New York federal grand jury indicted six defendants accused of using stolen U.S. Treasury tax refund checks and fraudulent identification documents to open bank accounts in the names of intended payees.

The department announced the creation of the National Fraud Enforcement Division on April 7. The unit says it is focused on investigating and prosecuting fraud against the American public, while supporting President Trump’s Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance, as part of a broader federal push to reduce fraud, waste and abuse in benefit programs.

The breadth of the latest cases shows enforcement pressure remains spread across health care, public benefits, tax administration and financial crimes. For businesses, insurers, lenders and program administrators, the cases signal continued scrutiny of billing practices, loan applications, payroll reporting and claims submitted to government-backed systems.

Our earlier coverage of the House Oversight subcommittee roundtable on reducing the national debt highlighted lawmakers’ push to curb federal waste, fraud, abuse, and what they described as overregulation. The discussion framed stronger program oversight and tighter spending controls as tools to protect public finances, national security, and household affordability.

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