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 operation targeted young people participating in summer camps, church groups, and recreational programs, with perpetrators claiming to provide medical services through behavioral health organizations they owned and operated.
Acting Attorney General Todd Blanche confirmed two Ohio state employees and two co-conspirators were charged with 32 counts of fraud. The scheme involved diagnosing children with a behavioral adjustment disorder without conducting tests or delivering actual care.
The investigation uncovered the seizure of luxury vehicles, including a Maserati, six Mercedes-Benzes, a Jaguar, a Bentley, and a McLaren, as well as $600,000 from seven bank accounts. The probe is part of the administration’s Task Force to Eliminate Fraud, led by Vice President JD Vance.
A spokesperson for Vance stated that “countless lives could have been made better by the millions of tax dollars stolen, but instead they were used to purchase luxury cars.”
Additionally, Ohio Governor Mike DeWine’s administration suspended Medicaid payments to 49 home health care businesses flagged for waste, fraud, or abuse. Scott Partika, Director of the Ohio Department of Medicaid, said, “These initial suspensions mark a critical step forward in ensuring accountability and deterring abuse within the Medicaid system.”
