The Justice Department charged 19 defendants in Philadelphia with healthcare fraud schemes involving over $4 million in fraudulent Medicare and Medicaid claims, marking a major expansion of federal enforcement efforts targeting criminals who exploit taxpayer-funded healthcare programs through sophisticated billing schemes.
Strike Force Expansion Targets Philadelphia
The Department of Justice announced the establishment of a new strike force office in the Eastern District of Pennsylvania on Tuesday, bringing together the National Fraud Enforcement Division and the U.S. Attorney’s Office. The defendants include home health care company owners, employees, purported aides and Medicaid recipients accused of submitting false claims. Pennsylvania Attorney General Dave Sunday simultaneously announced a plea agreement involving the final defendant in a separate 21-defendant case tied to more than $1.7 million in fraudulent claims.
The DOJ emphasized that the partnership will enable law enforcement to combat criminals who hide behind corporate structures to defraud government healthcare programs. The expansion brings enhanced federal resources to a district with an established tradition of strong healthcare fraud enforcement, officials said.
Impossible Hours and Fake Services
Federal prosecutors detailed schemes where home health aides allegedly billed Medicaid for services while incarcerated, hospitalized, working other jobs or traveling overseas. One case involves a Medicaid recipient who claimed to require extensive home health assistance while simultaneously working as a carpenter. Other defendants submitted overlapping or impossible work hours, including claims exceeding 24 hours of care in a single day. One home health care agency and its owners face charges for billing Medicaid using false clock-in and clock-out records.
Nationwide Enforcement Expansion
The Philadelphia office joins recent strike force additions in California, Arizona, Nevada, Massachusetts and Minnesota. The expansion follows two national healthcare fraud enforcement actions involving more than $15 billion in alleged losses in 2025 and more than $6 billion in alleged losses in 2026. The strike force will coordinate with the Department of Health and Human Services Office of Inspector General, the FBI, the DEA and other law enforcement agencies. The DOJ stated the expansion demonstrates the Fraud Division will use every available legal tool to identify, investigate and prosecute offenses against the American people and protect taxpayer dollars from fraudulent schemes.