(TNND) — Federal prosecutors say a sweeping health care fraud crackdown in the Los Angeles area uncovered roughly $2 billion in allegedly fraudulent claims to public and private insurance programs and led to charges against 15 people, including six medical professionals.
WASHINGTON, DC – SEPTEMBER 22: Vice President J.D. Vance (C) appears onstage as Deputy Administrator & Chief Operating Officer Kimberly Brandt (L) holds up a poster depicting a headshot of Cory Lloyd, convicted of Affordable Care Act fraud, as Administrator for the Centers for Medicare & Medicaid Services Dr. Mehmet Oz (R), speaks during a news conference on fraud at the Eisenhower Executive Office Building on the White House Campus on September 22, 2026 in Washington, DC. Vance announced a federal crackdown on Affordable Care Act fraud, removing over 750,000 allegedly ineligible enrollments and banning hundreds of suspect brokers to save taxpayers an estimated $2.2 billion. (Photo by Andrew Harnik/Getty Images)
The Justice Department said eight defendants were arrested Oct. 22, and seven others had also been charged. Prosecutors emphasized the defendants are accused in several separate schemes, not one coordinated operation.
The largest case outlined by federal authorities involves more than $1.6 billion in claims submitted to private insurers for purported substance abuse treatment. Prosecutors allege a father and son, David and Nathan Young, controlled dozens of treatment companies and recruited vulnerable people from across the country to facilities in Southern California and elsewhere.
Investigators say recruiters offered people flights, housing, money, drugs, and other benefits, then billed insurers for treatment that was unnecessary or never provided. Prosecutors also allege some patients were moved between facilities to keep claims flowing, and that some who tried to leave were drugged or prevented from departing. A fifth defendant in that case, Nicholas Moore, has pleaded guilty and admitted helping submit about $199 million in claims, according to prosecutors.
AUCKLAND, NEW ZEALAND – MAY 15: Prescription medication is pictured on May 15, 2014 in Auckland, New Zealand. Bill English has delivered his sixth budget which included a $493 million families package, which includes extending paid parental leave and will introduce free doctors’ visits and prescriptions for under 13s. It was also announced that the Government Budget would run at a surplus of $372 million for the 12 months to June 30, 2015. (Photo by Phil Walter/Getty Images)
The broader sweep includes allegations involving illegal kickbacks for genetic testing and patient referrals, the sale of prescription drug samples, and a previously charged nearly $270 million Medi-Cal pharmacy fraud case. Prosecutors say that scheme involved claims for medically unnecessary prescriptions.
The Justice Department described the overall set of cases as involving about $2 billion in fraudulent claims. Some officials and news reports used a $1.8 billion figure. The specific scheme amounts in the Justice Department announcement are approximate and may not match the rounded total exactly. The figures refer to alleged claims or losses, not a finding that the defendants took or received that amount.
The cases were investigated by federal agencies including the FBI, the Department of Health and Human Services inspector general, IRS Criminal Investigation, and the Drug Enforcement Administration. The Justice Department said its Health Care Fraud Strike Force has charged more than 6,200 defendants in cases involving over $45 billion in billed claims since 2007.
All charges are allegations. Defendants are presumed innocent unless proven guilty in court.