The U.S. Department of Justice announced Thursday a data-sharing agreement with the State of Ohio and a series of indictments against individuals accused of participating in schemes totaling more than $42 million in fraud.
According to the DOJ, three suspects have been detained and two others are awaiting extradition.
Four defendants were charged in connection with a behavioral health fraud scheme exceeding $30 million. Prosecutors allege the suspects claimed to provide therapeutic behavioral services and psychotherapy to children and young adults attending summer camps, church groups and recreational programs. Authorities said the suspects stopped registering with state officials, then continued submitting claims through other entities. Investigators later seized $469,000 in funds and 14 vehicles valued at about $800,000.
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In another case, a Cincinnati man was charged with leading a $12 million scheme to fraudulently bill Medicaid for therapeutic behavioral services that prosecutors say were never provided to children in after-school programs.
A separate investigation uncovered an alleged $15 million romance scam targeting 130 Americans. The defendants allegedly used AI-generated personas to mislead victims with fabricated stories, prompting them to send money. Authorities said they seized more than $3 million in assets from the suspects.
“Ohio is leading the charge in the fight against fraud, and some states should take notice,” said Acting Attorney General Todd Blanche. “Working closely with Ohio officials, the Department of Justice dismantled a sophisticated Medicaid fraud scheme that exploited taxpayers to fund exotic cars and lavish lifestyles. By holding these fraudsters accountable and partnering with the FBI on a robust Most Wanted fraudster list, we are pursuing fraud more aggressively than ever. No fraud scheme is beyond our reach.”
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Thursday’s announcement comes a week after Ohio Gov. Mike DeWine welcomed federal Medicaid chief Dr. Mehmet Oz for a roundtable discussion on Medicaid fraud. DeWine has faced criticism from both Democrats and Republicans for not implementing safeguards to prevent fraud.
Oz said he trusts DeWine’s handling of investigations, while DeWine maintained that Ohio has been proactive in addressing any problems.
