COLUMBUS, Ohio — Federal officials busted a gang of Ohio fraudsters for swiping $30 million in taxpayer money meant for kids’ behavioral health services — but was instead spend on luxury cars and other fine items.
At least four suspects — including two state employees — have been hit with 32 counts over the Medicaid fraud, while nearly $470,000 was seized from bank accounts linked to the defendants in addition to the the 14 vehicles bought with their allegedly ill-gotten gains.
The tally included six Mercedes-Benz sedans, a Bentley, a Jaguar, a Maserati, a McLaren, a BMW, a GMC and two Land Rovers, all worth in excess of $800,000.
Two of the defendants ran behavioral health services entities that were supposed to offer psychotherapy and other behavior services to kids or young adults enrolled in recreational programs, church groups or summer camps.
All four conspired “to submit false and fraudulent claims for services that were medically unnecessary and not provided as represented,” according to the Department of Justice.
One of the organizations had its credentials revoked by the Ohio Department of Mental Health and Addiction Services — but the defendants were still able to enter claims through other entities, per the DOJ.
Acting Attorney General Todd Blanche told reporters Thursday that Ohio officials helped the feds dismantle the “sophisticated Medicaid fraud scheme that exploited taxpayers to fund exotic cars and lavish lifestyles.”
The Trump administration’s “war against fraud has come to the great state of Ohio — and this is a war that we will win,” Blanche added.
The Department of Health and Human Services Office of Inspector General (HHS OIG), the FBI and Ohio’s Medicaid Fraud Control Unit — touted as the “gold standard” for other states by Federal Trade Commission Chairman Andrew Ferguson — all helped nab the suspects.
Four others were also charged for defrauding $1.4 million in Paycheck Protection Program loans from the Small Business Administration by providing false information on their applications.
Butler County prosecutors are also bringing state charges against a Cincinnati man who allegedly stole $12 million in Medicaid money while purporting to offer therapeutic behavioral services to children, which were never provided.
In all, federal and state prosecutors are seeking as much as $50 million in stolen taxpayer money, Blanche noted.
Ferguson also announced that Hawaii’s Medicaid Fraud Control Unit was being decertified and having millions of dollars in funding revoked for failing to bring charges or secure convictions after 2020 — even as the state’s program enrollment ballooned by 40% following the COVID-19 pandemic.
The feds have also apprehended five suspects accused of operating a “romance scam” to the tune of $15 million, robbing more than 100 elderly Americans using AI-created online dating profiles — and using the funds to purchase a mansion and other lavish items in Ghana.
Additionally, FBI Director Kash Patel announced that the bureau was releasing a “Most Wanted Fraudsters” list of eight individuals who had collectively run off with more than $1 billion in various schemes.
The suspects are wanted for charges including wire fraud, mail fraud, mortgage fraud, money laundering, health care fraud and conspiring to operate illegal gambling businesses.
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