Federal law enforcement announced charges against two Ohio state employees and two co-conspirators in connection with an alleged $30 million Medicaid billing fraud scheme involving children’s behavioral health services that were never rendered. Acting Attorney General Todd Blanche announced the case at a press conference, noting it was one of several cases unsealed over the previous week targeting approximately $50 million in fraud, including a $1.4 million COVID-19 loan fraud scheme.
The Scheme
The defendants are alleged to have offered therapeutic behavioral services and psychotherapy to young adults and children attending summer camps, church groups, and recreational programs. According to investigators, the alleged ringleaders diagnosed every single recipient with a behavioral adjustment disorder to profit from vulnerable children. However, no assessment testing was ever conducted, the behavioral services never occurred, and the children never received any care.
Participants were required to complete intake packets and provide their Medicaid recipient numbers, which are necessary to bill for services. While a medical assessment was supposed to be required, the defendants did not conduct a single test. As part of the investigation, 14 vehicles were seized, including a Maserati, a Mercedes, a Bentley, and a McLaren. All four defendants turned themselves in to authorities during the week.
Federal Task Force Response
The announcement came from the Justice Department, state officials, and members of the Task Force to Eliminate Fraud, led by Vice President JD Vance. A spokesperson for Vice President Vance stated: “It is disgusting that fraudsters were allowed to deprive essential developmental services from American children in need. Countless lives could have been made better by the millions of tax dollars stolen, but instead they were used to purchase luxury cars.”
The case reflects broader federal efforts targeting fraud across government programs including Medicaid, Medicare, and small business loans.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.aol.com/articles/alleged-30m-fraud-ring-involving-152741212.html