Federal prosecutors have indicted four suspects in a $30 million Medicaid fraud scheme that falsely billed the federal government for children’s behavioral health services. The individuals, including two Ohio state employees and two co-conspirators, orchestrated the deception by claiming to provide medical care through behavioral health organizations they allegedly owned and operated—despite performing no tests or delivering actual treatment.
According to Acting Attorney General Todd Blanche, the scheme involved falsifying diagnoses of behavioral adjustment disorders for young people who attended summer camps, church groups, and recreational programs. The children received no real therapeutic intervention under the fraudulent scheme.
The indictment includes 32 counts. Law enforcement seized luxury vehicles such as a Maserati, six Mercedes-Benz models, a Jaguar, a Bentley, and a McLaren during the investigation. Federal Bureau of Investigation Director Kash Patel confirmed $600,000 was recovered from seven bank accounts linked to the fraud.
The operation falls under the administration’s Task Force to Eliminate Fraud, led by Vice President JD Vance. A Vance spokesperson stated: “It is disgusting that fraudsters were allowed to deprive essential developmental services from American children in need. Countless lives could have been made better by the millions of tax dollars stolen, but instead they were used to purchase luxury cars.”
Ohio Gov. Mike DeWine’s administration also suspended Medicaid payments to 49 businesses providing home health care flagged for waste, fraud, or abuse. Ohio Department of Medicaid Director Scott Partika emphasized: “These initial suspensions mark a critical step forward in ensuring accountability and deterring abuse within the Medicaid system.”
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