Federal authorities indict four in alleged $30 million Medicaid fraud case

Federal law enforcement officials announced Thursday that two Ohio state employees and two co-conspirators were indicted in an alleged $30 million Medicaid billing fraud scheme involving children's behavioral health services that were never rendered.

The defendants are accused of offering therapeutic behavioral services and psychotherapy to young adults and children attending summer camps, church groups and recreational programs. Officials said the alleged ringleaders diagnosed every recipient with a behavioral adjustment disorder, but no assessment testing was conducted and no services occurred.

Participants were required to complete intake packets and provide Medicaid recipient numbers to enable billing. A medical assessment was also required, but authorities said the defendants conducted none.

Fourteen vehicles were seized during the probe, including a Maserati, a Mercedes, a Bentley and a McLaren. All four defendants turned themselves in to authorities this week. The announcement came from the Justice Department, state officials and members of President Trump's Task Force to Eliminate Fraud.

Acting Attorney General Todd Blanche said the Medicaid case was one of several fraud cases unsealed over the past week that together target about $50 million, including a separate $1.4 million COVID-19 loan fraud scheme.

FBI Director Kash Patel unveiled a new public list of the bureau's most wanted fraud fugitives. Colin McDonald, assistant attorney general leading the new National Fraud Enforcement Division, announced a data-sharing agreement with the Ohio secretary of state to help identify ownership links used to conceal fraud schemes.