Justice Department charges 9 in Ohio fraud schemes worth $42 million

Federal and state prosecutors in Ohio charged nine defendants with more than $42 million in alleged fraud, saying the cases show how false claims can siphon taxpayer money from Medicaid, government programs, and consumers before legitimate patients ever see the care they need.

The Justice Department said Thursday’s announcement reflected unprecedented cooperation between federal and state authorities in Ohio, backed by a data-sharing agreement meant to improve detection and prosecution of fraud. Senior officials said the work is aimed not just at punishing individual defendants, but at catching schemes earlier, before losses mount and public programs are distorted by fake billing.

The largest case highlighted in the announcement involved $30 million in alleged fraud targeting Ohio’s behavioral health department. Four people, including two Ohio state employees, were charged. Prosecutors said two defendants owned businesses that claimed to provide behavioral health services for young adults attending summer camps, church groups, and recreational programs, but the services were never delivered. Officials said one organization’s accreditation was invalid, yet claims were allegedly submitted anyway.

Investigators said the scheme was built on falsified diagnoses and phantom care. According to the Justice Department, the alleged ringleaders diagnosed every recipient with a behavioral adjustment disorder even though no assessments were done and the children never received treatment. The money, prosecutors said, helped finance a lavish lifestyle, including 14 vehicles valued at about $800,000. CBS News reported that the seized vehicles included a Maserati, a Mercedes, a Bentley, and a McLaren. CBS News also said all four defendants in the Medicaid fraud case turned themselves in to authorities this week.

A separate Ohio case involved three people detained this week in an alleged $15 million scheme, with two more defendants awaiting extradition. Taken together, the charges included health care fraud, government program fraud, and consumer fraud schemes, underscoring how many public systems can be touched by one network of false claims.

Acting Attorney General Todd Blanche said Ohio was “leading the charge” in the crackdown and said the department had dismantled a sophisticated Medicaid fraud scheme. FBI Director Kash Patel and Centers for Medicare & Medicaid Services Administrator Mehmet Oz joined the announcement in Ohio, where the FBI also unveiled a Most Wanted Fraudsters list and said the public would play a key role in helping identify suspects.

The Ohio action fits a wider federal push. In June 2025, the Justice Department said a national health care fraud takedown charged 324 defendants in 50 federal districts, alleged more than $14.6 billion in intended losses, and led to seizures of more than $245 million in cash, luxury vehicles, cryptocurrency, and other assets.