CHICAGO — In what the Department of Justice has called the largest health care fraud enforcement action in U.S. history, federal authorities have charged 13 individuals in Chicago as part of a sprawling crackdown on schemes that allegedly stole over $14.6 billion from Medicare, Medicaid, and private insurers.
The national takedown, which spans multiple states and jurisdictions, includes a total of 324 defendants and is being led by the Department of Justice Criminal Division’s Fraud Section, with support from the Health and Human Services Office of Inspector General (HHS-OIG), FBI, DEA, and state Attorneys General.
Chicago Defendants Allegedly Bilked Over $1.8 Billion
According to the U.S. Attorney’s Office for the Northern District of Illinois, the 13 Chicago-area defendants are accused of submitting more than $1.83 billion in fraudulent medical claims, resulting in $865 million in improper reimbursements. These fraudulent acts included false billing schemes, telehealth fraud, and Covid-19 testing scams.
Federal prosecutors say this effort marks a historic high for the district and a reminder of the systemic abuse targeting U.S. health care systems.
Fake Call Centers and COVID Scams Cited
One of the largest alleged operations involved a call center based in Pakistan. Federal agents say the operators there posed as U.S. medical providers, defrauding Medicare and Medicare Advantage plans out of $703 million. Additionally, assets seized are believed to be linked to a fraudulent Covid-19 testing scheme worth approximately $894 million, involving claims submitted to the federal HRSA Covid-19 Uninsured Program.
“The defendants caused clinical labs in Illinois and Texas to submit false and fraudulent claims to the U.S. government,” prosecutors stated in the DOJ press release.
Assets Seized: Crypto, Cars, and Cash
The nationwide bust also led to the seizure of more than $245 million in assets, including:
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Luxury vehicles
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Cryptocurrency wallets
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Large sums of cash
These seizures aim to disrupt the financial foundations of fraudulent operations and send a clear message to criminal networks that health care fraud will be aggressively pursued.
Justice Department Officials Speak Out
“This record-setting health care fraud takedown delivers justice to criminal actors who prey upon our most vulnerable citizens,” said Attorney General Pamela Bondi, emphasizing the massive financial and emotional toll these schemes impose on communities.
Andrew S. Boutros, U.S. Attorney for the Northern District of Illinois, added, “Health care fraud is an insidious crime that siphons off tax dollars meant for the vulnerable and disabled. We will not stand by while criminals profit off our health systems.”
Why It Matters for Illinois Residents
For Illinoisans, especially those relying on Medicare or other federal assistance, these schemes can:
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Drive up premiums and out-of-pocket costs
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Drain public funds meant for real medical care
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Undermine trust in the health system
The investigation’s scale demonstrates the financial risks of unchecked fraud and the government’s evolving capacity to track and prosecute large-scale scams — including international actors.
Do you believe enough is being done to protect public health funds in Illinois? Share your thoughts at chicagosuburbanfamily.com and help raise awareness of health care fraud in our communities.
