Federal prosecutors said that four suspects turned themselves in after an investigation into a $30 million Medicaid fraud scheme.
Two Ohio state employees and two co-conspirators were indicted in the scheme that fraudulently billed the federal government for children’s behavioral health services, according to Acting Attorney General Todd Blanche.
‘These initial suspensions mark a critical step forward in ensuring accountability and deterring abuse within the Medicaid system.’
Two of the defendants falsely claimed to provide the medical services through behavioral health organizations that they owned and operated, according to Blanche.
The four suspects were hit with 32 counts in the indictment.
The fake services provided included behavioral therapy and psychotherapy for young people who attended summer camps, church groups, and recreational programs. They allegedly diagnosed the kids with a behavioral adjustment disorder, but no tests were performed, and the children received no actual care.
Among the 14 luxury vehicles seized in the investigation were a Maserati, six Mercedes Benz, a Jaguar, a Bentley, and a McLaren.
Federal Bureau of Investigation Director Kash Patel added that $600,000 was seized through seven bank accounts.
The investigation was a part of the administration’s Task Force to Eliminate Fraud, led by Vice President JD Vance.
“It is disgusting that fraudsters were allowed to deprive essential developmental services from American children in need,” a spokesperson for Vance said to CBS News.
“Countless lives could have been made better by the millions of tax dollars stolen, but instead they were used to purchase luxury cars,” the spokesperson added. “This is another example of the type of fraud the vice president’s task force is putting a stop to.”
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Also on Thursday, Republican Ohio Gov. Mike DeWine’s administration announced the suspension of Medicaid payments to 49 businesses providing home health care that were flagged for waste, fraud, or abuse.
“These initial suspensions mark a critical step forward in ensuring accountability and deterring abuse within the Medicaid system,” said the Ohio Department of Medicaid Director Scott Partika. “We will continue using advanced analytics and enforceable action to protect Ohioans and preserve program integrity.”
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