National crackdown on Medicare fraud leads to four new charges filed in Northern District of Texas

Forth Worth, Texas – The Justice Department unveiled the results of its 2025 National Health Care Fraud Takedown, leading to criminal charges against 324 individuals across 50 federal districts and with assistance from 12 State Attorneys General’s Offices. These cases include 96 licensed medical professionals—doctors, nurse practitioners, pharmacists—and others accused of orchestrating health care fraud schemes involving over $14.6 billion in intended losses.

This coordinated effort represents an unmatched commitment to dismantling complex, large-scale fraud. Agencies involved included the Department of Justice Criminal Division’s Health Care Fraud Unit, numerous U.S. Attorneys’ Offices, HHS-OIG, FBI, and DEA. Investigators focused on a wide range of alleged schemes involving Medicare, Medicaid, telemedicine billing, opioid distribution, wound-care scams, genetic testing, prescription diversion, and packaged illegal kickback operations.

Assets Seized and Claims Blocked

Among the takedown’s achievements, law enforcement seized more than $245 million in cash, luxury cars, cryptocurrency, and other assets. CMS also blocked $4 billion in potentially fraudulent claims and suspended or revoked billing privileges from 205 providers. Civil lawsuits filed against 20 defendants account for another $14.2 million, while civil settlements with 106 parties total $34.3 million.

Attorney General Pamela Bondi emphasized that “this record‑setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” warning that this administration “will not tolerate criminals who line their pockets with taxpayer dollars.”

Telemedicine, Genetic Tests, and Opioid Schemes

Updated enforcement efforts uncovered multiple large-scale telemedicine and genetic testing fraud operations. Forty-nine defendants were charged nationally in schemes totaling approximately $1.17 billion in false claims. In Florida, one telemedicine scam alone was worth $46 million.

Prescription opioid fraud was another major area, with 74 individuals—including 44 licensed professionals—charged in schemes involving over 15 million pills of controlled substances. DEA and Justice Department officials stressed that health care fraud contributes to the opioid crisis, not just financial theft.

Transnational Fraud Rings

Significant action also targeted international fraud syndicates. “Operation Gold Rush” involved transnational criminal organizations that submitted over $10.6 billion in fraudulent Medicare claims for urinary catheters and durable medical equipment. Federal authorities say they used stolen identities—many belonging to unsuspecting citizens—and money‑laundering tactics involving cryptocurrency and shell companies. Law enforcement managed to stop about $4.45 billion in payouts, and around $27.7 million has been seized.

Another scheme uncovered in Illinois involved foreign-marketing firms using artificial intelligence to generate fake voice consent by Medicare beneficiaries in a $703 million fraud scheme, $418 million of which was paid out. Additionally, a telehealth billing ring was charged with defrauding Arizona Medicaid of $650 million, allegedly in exchange for kickbacks tied to targeting homeless individuals and Native American groups.

Wound‑Care Allograft Exploitation

In Arizona and Nevada, authorities charged seven individuals—five of them medical professionals—in a fraudulent scheme involving expensive amniotic wound allografts. These were often used on elderly patients with minor or superficial wounds, often without proper medical oversight, totaling $1.1 billion in fraudulent claims.

Northern District of Texas Focus

The Northern District of Texas indicted four defendants for roughly $210 million in false Medicare and workers’ compensation claims:

• Demitrious Gilmore (Lubbock): Filed $19 million in fraudulent worker’s comp claims, received $17 million.

• Gary Martin (McKinney): Billed $73 million to Medicare for unneeded COVID-19 tests.

• Khadeer Khan Mohammed (Richardson): Allegedly submitted $93 million in fake genetic tests.

• Olatunbosun Osukoya (Plano): Filed $25 million in false EEG referrals via kickback payments.

Government and Agency Perspectives

Acting U.S. Attorney Nancy Larson noted, “These individuals lined their own pockets, egregiously stealing beneficiaries’ identities and pillaging the coffers of federal programs.” HHS‑OIG Acting Inspector General Juliet T. Hodgkins said the takedown addressed both patient harm and taxpayer loss. CMS Administrator Dr. Mehmet Oz highlighted the importance of real-time analytics and administrative actions to “stop fraud before it starts.”

This takedown sends a strong warning that law enforcement will aggressively pursue health care abuse, protect patient safety, and safeguard taxpayer dollars. The collaboration across multiple agencies and jurisdictions marks this effort as the largest health care fraud enforcement action in history.