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Alleged $30M fraud ring involving children's health services busted, officials say

Alleged $30M fraud ring involving children's health services busted, officials say

Summary

Federal officials arrested four people in Ohio for allegedly running a $30 million scheme that billed Medicaid for children’s behavioral health services that were never given. The suspects reportedly diagnosed all the children with disorders without doing tests or providing any care and used the stolen money to buy luxury cars.

Key Facts

  • Authorities say the fraud involved billing for therapy services that never happened.
  • The defendants targeted children in summer camps, church groups, and recreational programs.
  • Every child was supposedly diagnosed with a behavioral adjustment disorder without any real medical testing.
  • The suspects collected Medicaid numbers and paperwork needed to bill for services.
  • Four defendants turned themselves in and 14 luxury vehicles were seized, including a Maserati and a Bentley.
  • The Department of Justice, working under President Trump’s administration, conducted the enforcement.
  • This crackdown is part of a broader effort to fight fraud, including other cases in Los Angeles and Minnesota.
  • Vice President JD Vance’s office condemned the fraud for harming children and misusing taxpayer money.
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