DOJ announces charges in $1.3 billion in health-care fraud

By Renae Merle / The Washington Post

WASHINGTON — The Justice Department on Thursday announced charges against 412 people for $1.3 billion in health-care fraud, the largest such takedown in U.S. history.

Many of the charges were related to doctors unnecessarily prescribing opioids, which then ended up on sale on the street, the department said. One fake rehab facility in Palm Beach recruited addicts with gift cards, drugs and trips to casinos and strip clubs and then billed insurance companies for $58 million in false treatments and tests, according to the charges. In Texas, a doctor and clinic owner are accused of accepting $300 cash per patient for unnecessary hydrocodone prescriptions.

These cases highlight “the enormity of the fraud challenge we face,” Attorney General Jeff Sessions said at a news conference. “The problem is compounded by the fact that our country is in the midst of the deadliest drug crisis in our history.”

Of those charged, 56 were doctors and 120 cases were related to opioids, according to the Justice Department. Some falsely billed Medicare and Medicaid. Arrests have been made across the country from Detroit and Miami to Los Angeles and Chicago, according to prosecutors.

“Too many trusted medical professionals like doctors and nurses and pharmacists have chosen to violate their oaths and put greed ahead of their patients,” Sessions said. “Amazingly, some have made the practices into multimillion dollar criminal enterprises. They seem oblivious to the disastrous consequences of their greed.”

This comes amid a larger debate about how the country should address the 2 million people the government currently estimates are addicted to opioids. The epidemic has swamped hospitals, even as public health authorities urge doctors to cut back on the prescriptions they offer. The shortage of treatment for people with opiod-use disorder has even complicated efforts in Congress to repeal and replace the Affordable Care Act. States struggling with the issue have objected to a proposed roll back of the ACA’s expansion of Medicaid, which is helping fund treatment for many people, for example.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Frank DeMiero founded and directed the Seattle Jazz Singers, a semi-professional vocal group. They are pictured here performing at the DeMiero Jazz Festival. (Photos courtesy the DeMiero family)
‘He dreamed out loud’: Remembering music educator Frank DeMiero

DeMiero founded the music department at Edmonds College and was a trailblazer for jazz choirs nationwide.

Provided photo 
Tug Buse sits in a period-correct small ship’s boat much like what could have been used by the Guatamozin in 1803 for an excursion up the Stillaguamish River.
Local historian tries to track down historic pistol

Tug Buse’s main theory traces back to a Puget Sound expedition that predated Lewis and Clark.

Archbishop Murphy High School on Friday, Feb. 28 in Everett, Washington. (Will Geschke / The Herald)
Former teacher charged with possession of child pornography

Using an online investigation tool, detectives uncovered five clips depicting sexual exploitation of minors.

A person waits in line at a pharmacy next to a sign advertising free flu shots with most insurance on Thursday, Feb. 27, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Have you had the flu yet, Snohomish County? You’re not alone.

The rate of flu-related hospitalizations is the highest it’s been in six years, county data shows, and there are no signs it will slow down soon.

City of Everett Principal Engineer Zach Brown talks about where some of the piping will connect to the Port Gardner Storage Facility, an 8-million-gallon waste water storage facility, on Thursday, Feb. 27, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Port Gardner Storage Facility will allow Everett to meet state outflow requirements

The facility will temporarily store combined sewer and wastewater during storm events, protecting the bay from untreated releases.

Founder of Snohomish County Indivisible Naomi Dietrich speaks to those gather for the senator office rally on Wednesday, Feb. 5, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Membership numbers are booming for Snohomish County’s Indivisible chapter

Snohomish County’s Indivisible chapter, a progressive action group, has seen… Continue reading

Lynnwood
Police: Man fired gun into Alderwood Mall to steal $20K in sneakers

The man allegedly shot through mall entrances and stole high-end merchandise before reselling it

A car drives along Lockwood Road in front of Lockwood Elementary School pas the new flashing crosswalk on Monday, Sept. 30, 2024 in Bothell, Washington. (Olivia Vanni / The Herald)
Everett responds to higher traffic deaths with ‘Vision Zero’ goal

Officials are pushing for lower speed limits, safer crossings and community input to curb fatalities on city roads.

Mrs. Hildenbrand runs through a spelling exercise with her first grade class on the classroom’s Boxlight interactive display board funded by a pervious tech levy on Tuesday, March 19, 2024 in Marysville, Washington. (Olivia Vanni / The Herald)
Snohomish County schools react to education department firings

The Department of Education announced Tuesday it will lay off more than 1,300 employees.

Lynnwood
Lynnwood City Council eyes path forward at contentious meeting

The council discussed how to move forward in filling its vacancy after Jessica Roberts withdrew Thursday.

Everett Transit Director Mike Schmieder talks about how the buses are able to lower themselves onto the induction chargers on Monday, March 10, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett Transit set to sell nine electric buses

The buses, built by a now-bankrupt company, had reliability issues for years. The agency’s 10 other electric buses don’t have those problems.

Camano Island Fire & Rescue chooses new chief

Jason Allen, who has worked at the district since 1999, will replace outgoing Fire Chief Levon Yengoyan.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.