Justice Department charges 19 in alleged $4 million Medicare and Medicaid fraud scheme in Philadelphia

By Alex Tanzer, 
updated on August 4, 2026

Federal prosecutors charged 19 defendants in Philadelphia with bilking Medicare and Medicaid out of more than $4 million through home health care fraud, part of a broader DOJ crackdown that has now targeted more than $21 billion in alleged losses nationwide.

The Justice Department announced Tuesday that it is expanding its Northeast Health Care Fraud Strike Force into Philadelphia, opening a new office in the Eastern District of Pennsylvania. The expansion came paired with the 19 new cases, which federal and state authorities say involved home health care company owners, employees, purported aides, and Medicaid recipients running overlapping billing schemes against taxpayer-funded programs.

The alleged fraud was not subtle. Prosecutors say some home health aides billed Medicaid for providing care while they were incarcerated, hospitalized, working other jobs, or traveling overseas. Others allegedly submitted overlapping or impossible work hours, including claims that exceeded 24 hours of care in a single day. One home health care agency and its owners were charged with billing Medicaid for false clock-ins and clock-outs, Fox News reported.

Billing for care while behind bars

The details paint a picture of a system gamed at every level. The defendants span the home health care chain, from company owners who allegedly set up the false billing infrastructure, to employees and aides who submitted the fraudulent claims, to Medicaid recipients who participated in the schemes. Together, the 19 defendants are accused of submitting more than $4 million in bogus claims to Medicare and Medicaid.

Separately, Pennsylvania Attorney General Dave Sunday announced a plea agreement involving the final defendant in a previously charged 21-defendant case tied to more than $1.7 million in claims. That case adds to the scale of home health care fraud that federal and state authorities have been unraveling in the Philadelphia region.

The DOJ did not release the names of the 19 newly charged defendants, nor did it specify the exact statutes under which they were charged. Whether any arrests have been made in connection with the new cases remains unclear.

Strike force expansion reaches six states

Philadelphia is the latest city added to a growing federal strike force network. The DOJ has previously expanded the program into California, Arizona, Nevada, Massachusetts, and Minnesota. The new Philadelphia office will bring together the DOJ's National Fraud Enforcement Division and the U.S. Attorney's Office for the Eastern District of Pennsylvania, with support from the Department of Health and Human Services Office of Inspector General, the FBI, and the DEA.

A DOJ release framed the move as a force multiplier for a district that already has a track record on health care fraud cases:

"The Fraud Division's expansion into the Eastern District of Pennsylvania brings enhanced federal resources to a district with an established tradition of strong health care fraud enforcement."

The department also signaled that the Philadelphia office is part of a wider enforcement posture. In 2025, two national health care fraud enforcement actions targeted more than $15 billion in alleged losses. A separate 2026 action involved more than $6 billion in alleged losses. Combined with the Philadelphia charges, those figures reflect a DOJ apparatus that has put health care fraud squarely in its crosshairs.

Another DOJ statement made the intent explicit:

"The Strike Force's expansion makes clear that the Fraud Division will use every available legal tool to identify, investigate, and prosecute offenses against the American people."

A problem President Trump has pressed hard

President Trump has been a vocal critic of federal health care fraud, particularly after a large-scale fraud scandal was exposed in Minnesota. The Philadelphia expansion fits within a broader enforcement agenda that treats Medicare and Medicaid fraud not as a paperwork problem but as theft from taxpayers and from the vulnerable patients these programs are supposed to serve.

The DOJ described the new partnership as one designed to reach the people who "hide behind corporations to commit fraud", a pointed reference to the corporate structures that home health care operators allegedly used to layer false claims through billing systems built on trust.

When aides can bill for 25 hours in a single day and nobody catches it until a federal strike force shows up, the system is not just being exploited, it is inviting exploitation. Every fraudulent dollar drained from Medicare and Medicaid is a dollar taken from seniors and low-income Americans who depend on those programs, and from the taxpayers who fund them.

About Alex Tanzer

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