Tag: fraud

We visited “ground zero” for hospice fraud: Los Angeles, California

At age 69, Lynn Ianni is a pickleball whiz, zipping from dinks to drives energetically. When she suffered an injury on the court two years ago, she sought physical therapy, and was surprised to learn her Medicare insurance wouldn’t cover it.

She was, according to Medicare records, dying and in hospice.

“They said, ‘you’re in hospice.’ And I said, ‘what? What are you talking about?” Ianni said. “‘Are you kidding me? Do I look like I’m in hospice?’”

Ianni’s Medicare number had been stolen, and used by a company to fraudulently enroll her in hospice – specialized, compassionate care for terminal patients nearing the end of their lives. It was another example of fraud in the hospice industry, long a nationwide problem. But her case arose well after officials had promised to stamp it out in California, where the problem has been especially acute.

Medicare is federally administered, and hospices must be certified for reimbursements. But the state issues the licenses for hospices to operate.

Three years ago, California’s state auditor sounded the alarm that Los Angeles County had seen a 1,500% increase in hospice companies since 2010 – more than six times the national average relative to its elderly population.

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Appallingly shoddy Vietnam War memorial to be torn down after $1million was spent on building it

A $1million memorial dedicated to Vietnam War veterans is set to be torn down just a year after a fraud scandal plagued the community behind the project.

California officials announced the memorial in 2023 as a way to honor Vietnamese soldiers allied with the US during the war. 

The construction began in the upscale Orange County neighborhood, which is also home to the largest Vietnamese population in the US. 

Former Orange County Supervisor Andrew Do spearheaded the project, allocating $1 million in taxpayer funds to the Viet America Society nonprofit. 

It was later revealed that Do was funneling money through the organization for his personal gain, and the disgraced politician was sentenced to five years in prison on conspiracy charges as a result.

Do’s fall from grace left the Vietnam War memorial in shambles, with new leadership appalled by the shoddy construction. 

A county report obtained by the Los Angeles Times found that repairing the unfinished monument would cost between $168,000 and $420,000, with an additional $40,000 to finish engraving the names of fallen soldiers. 

Since demolition would only cost a fraction of that estimate, county officials opted to start the project from scratch. 

Crews arrived at Mile Square Regional Park this week to tear down what remained of Do’s tarnished legacy. 

His successor and former political rival, Janet Nguyen, called the monument a ‘disgrace’ in a statement to the Daily Mail. 

‘The county decided to tear down the wall because we can do better. This memorial is a disgrace to veterans and not the respect they deserve. We have been looking for alternative options, including a space at the new veteran’s cemetery,’ she added. 

Nguyen told California news outlet, KTLA, in November that it was ‘heartbreaking’ to see how veterans were honored.  

The new county supervisor added that the monument was not even accessible to those with disabilities. 

Veterans from Vietnam are now elderly, but the monument was designed in a part of the park without a wheelchair-accessible path. 

‘What was the point?’ Nguyen questioned at a press conference in November. 

‘They … put up these cheap materials that are getting worn down already within not even a year, just so they could launder the rest of the money themselves.’ 

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HHS finds Minnesota child care agency failed to verify attendance records and ‘pursue fraud tips’

The US Department of Health and Human Services found Minnesota’s child care agency failed to adequately verify attendance records or “pursue fraud tips” following an oversight visit in late January, according to a letter obtained by The Post.

HHS’ Administration for Children and Families informed Minnesota officials that its handling of the distribution of federal taxpayer dollars for child care in the state had “not established adequate controls to verify the accuracy of county-issued provider payments based on attendance of children.”

As a result, child care centers could get funding from counties — and counties could then bill the state and the federal government by extension — “without reconciling billed hours against attendance records, even periodically.”

Minnesota’s Department of Children, Youth and Families also had “[l]imited staff and resources … to adequately pursue fraud tips and conduct proactive investigations,” Laurie Todd-Smith, HHS ACF deputy assistant secretary for early childhood development, wrote in the letter.

Just four investigators are working for Minnesota’s Child Care Assistance Program to address all potential fraud.

Additionally, Todd-Smith said, “Minnesota did not demonstrate that they are currently implementing required program integrity training for providers across the state,” meaning all child care center operators have to do is affirm they’ve read requirements to receive funding.

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RFK Jr. Blows the Whistle on $400M Autism Fraud Scheme in Minnesota

Acting HHS Secretary Robert F. Kennedy Jr. just appeared on The Joe Rogan Experience for the first time since taking his new role, and he did not shy away from detailing the fraud he says he uncovered after finally stepping into a position of power.

With Medicaid and Medicare alone, Kennedy said, “We lose just on Medicaid and Medicare, $100 billion a year. And it’s all just this, really, ya know, shocking, blatant fraud.”

As HHS Secretary, Kennedy described an industrialized scheme operating out of Florida, where P.O. boxes were set up for companies claiming to sell durable medical equipment like knee braces and wheelchairs.

But there’s one small problem: “They don’t have any knee braces or wheelchairs.”

However, they do have patient identification numbers.

Those ID numbers are used to bill the government for equipment that never ships. Kennedy said many of these schemes are operating out of countries like Cuba or Russia.

He then pointed to another staggering example: Los Angeles has more hospice care providers than the entire rest of the country COMBINED.

How is that possible? That’s because “it’s all fraudulent,” Kennedy said.

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JD Vance, Dr. Oz make dramatic move withholding $259.5M Minnesota Medicaid funds in first battle in the ‘war on fraud’

Vice President JD Vance announced Wednesday that $259.5 million in Medicaid funds for Minnesota won’t be reimbursed due to fraud concerns — giving Democratic Gov. Tim Walz 60 days to submit a “corrective action plan” or face further withholdings.

Vance was joined by Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, to make the announcement, which was first reported by The Post — one day after President Trump announced a Vance-led “war on fraud” in his State of the Union address.

The men also announced a national pause on firms that can seek subsidies through Medicare for durable medical equipment like canes and walkers.

“We are going to start very aggressively in the administration cracking down on the people and the organizations that are defrauding Americans,” Vance pledged after being delegated the role by Trump.

Oz said “Gov. [Tim] Walz has 60 days — 60 days, sir — to respond to our letter” if he wants repayment, which Oz said will require the state to “propose and act on a comprehensive corrective action plan to solve the problem.”

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Dearborn Heights Pharmacist Pleads in $3.2 Million Medicare, Medicaid Fraud Scheme

Pharmacist Mohammad Hamdan of Dearborn Heights pleaded guilty Tuesday to involvement in a fraudulent scheme that cost Medicare, Medicaid and Blue Cross Blue Shield of Michigan more than $3 million in losses.

Hamdan, 44, admitted that from February 2019 through June 2024, he used his two pharmacies to submit false and fraudulent claims for prescriptions even though the prescribed drugs were medically unnecessary, were not actually dispensed, or were not ordered by a physician, the U.S. Attorney’s Office said.

In many instances, the pharmacies — Prime Pharmacy at 1948 Ford Ave. in Wyandotte and Corner Med Pharmacy at 25302 W. Warren Street in Dearborn Heights — did not have the drugs on hand but billed insurers as if he dispensed them.

In all, Hamdan submitted false and fraudulent claims totaling over $3.2 million.

Hamdan faces a possible maximum sentence of not more than 10 years in prison.

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Fake Immigration Law Firm Busted in Brooklyn Federal Indictment

A five-count indictment was partially unsealed in the Eastern District of New York that charged five defendants with wire fraud conspiracy, wire fraud, money laundering conspiracy, and two counts of false impersonation of an officer or employee of the United States.  

Three of the defendants, Daniela Alejandra Sanchez Ramirez, 25 of Ibagué, Colombia and Green Brook, New Jersey, Jhoan Sebastian Sanchez Ramirez, 29, of  Ibagué, Colombia and Green Brook, New Jersey, and Alexandra Patricia Sanchez Ramirez, 38, of Ibagué, Colombia, were arrested at Newark Liberty International Airport while attempting to board a flight to Colombia with one-way tickets.  

Marlyn Yulitza Salazar Pineda, 24, of Ibagué, Colombia and North Plainfield, New Jersey, was arrested at a restaurant in New Jersey. 

A fifth defendant is not in U.S. custody.  

Daniela and Jhoan Ramirez, and Marlyn Pineda are immigration parolees, and Alexandra Ramirez is in the U.S. on a tourist visa. Daniela, Jhoan, and Alexandra Ramirez are siblings.  The four defendants who were arrested will be arraigned tomorrow morning at the federal courthouse in Brooklyn before United States Magistrate Judge Peggy Cross-Goldenberg.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Joseph V. Cuffari, Ph.D, Inspector General, Department of Homeland Security Office of Inspector General, and Ryan Hill, Acting Special Agent in Charge, United States Customs and Border Protection, Office of Professional Responsibility, New York Field Office, announced the arrests and charges.

“As alleged, the defendants undermined the integrity of our immigration system by impersonating judges, law enforcement officers, and lawyers, and targeting vulnerable members of our community who sought to hire attorneys to help them navigate sensitive legal issues,” stated United States Attorney Nocella.  “The defendants brazenly stole their victims’ money and deceived them by sending fictitious documents and holding sham court proceedings. I commend our Office’s prosecution team and the law enforcement agents whose hard work has disrupted this elaborate and outrageous scheme.”

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DOJ Moves to Strip U.S. Citizenship From Former North Miami Mayor Over Immigration Fraud

The U.S. Department of Justice and the U.S. Attorney for the Southern District of Florida have filed a civil denaturalization complaint in the U.S. District Court in Miami, against Phillipe Bien-Amie, also known as Jean Philippe Janvier, a native of Haiti who used two identities to procure immigration benefits — and eventually acquire U.S. citizenship — after illegally entering the U.S.

Before he became a U.S. citizen under the name Philippe Bien-Aime, the defendant used a fraudulent, “photo-switched” passport to enter the U.S. under the name Jean Philippe Janvier. In 2001, Bien-Aime was placed in removal proceedings and ordered removed under the Janvier identity. 

He appealed the removal order, but he withdrew the appeal, representing that he had returned to live in Haiti. In reality, Bien-Aime remained in the U.S. and, using the new name and date of birth, married a U.S. citizen to obtain permanent resident status. The marriage was fraudulent and invalid because he was already married to a Haitian citizen. After making numerous false and fraudulent statements in adjustment and naturalization proceedings, he was naturalized in 2006 under the Bien-Aime identity.   

The man served as the mayor of North Miami. 

“This Administration will not permit fraudsters and tricksters who cheat their way to the gift of U.S. citizenship,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The passage of time does not diminish blatant immigration fraud.”

The complaint, filed on Feb. 18, alleges that Bien-Aime illegally procured naturalization for several reasons. 

First, he was subject to a final removal order, which disqualified him from naturalization and precluded the former Immigration and Naturalization Service from considering his application for permanent resident status. Second, the removal order prohibited U.S. Citizenship and Immigration Services from considering his naturalization application and granting U.S. citizenship. 

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79th Suspect in Massive Minnesota Fraud Scheme ARRESTED After Attempting to Flee to UK — Center Received MILLIONS in Taxpayer Funds Under Walz Administration

Another taxpayer-funded grift artist has been stopped in her tracks.

The owner of Future Leaders Early Learning Center, who pocketed a staggering $3.67 million in child care funds in 2025 alone, has been arrested before she could escape to the UK.

Fahima Egeh Mahamud now becomes the 79th defendant charged in the sprawling Feeding Our Future fraud network, the same racket that stole hundreds of millions meant for kids’ meals and actual care.

In 2025 alone, the center reportedly hauled in a staggering $3.67 million in Child Care Assistance Program (CCAP) funding.

This comes after her site was already flagged for receiving over $850,000 from the feeding scheme between 2020 and 2021, while spending only a fraction of that on actual food for children.

More from KARE 11:

According to court documents, Mahamud operated a food site, Future Leaders Early Learning Center, under the sponsorship of Feeding Our Future between 2018 and 2021. Records show that Mahamud incorporated Future Leaders as a legal entity in March 2015 and participated in the Federal Child Nutrition Program under a different sponsorship. However, in September 2018, documents show that Mahamud signed a sponsor transfer request to be under the sponsorship of Feeding Our Future.

Future Leaders received funds in 2018 and 2019, but the claims were mostly “modest,” according to a special agent with the FBI, and rarely exceeded $10,000, but in December 2020, those funds dramatically increased. An affidavit in support of a criminal complaint says Future Leaders claimed to serve more than 1,000 children per day between January 2021 and June 2021. By February 2021, prosecutors say Future Leaders was claiming to serve nearly 60,000 meals to children monthly.

There was also email communication between Aimee Bock, the so-called “mastermind” behind the Feeding Our Future fraud, and another staff member at Feeding Our Future about Mahamud’s request to “increase from 500 to 1000.”

The special agent said that investigators found evidence that indicates many invoices and receipts are “inflated or fraudulent.” Some of the invoices were from a vendor of a co-conspirator who pleaded guilty to wire fraud.

The affidavit goes on to say that from December 2020 through July 2021, Future Leaders received more than $850,000 and only spent about $125,000 on food. Forensic analysis indicates that Future Leaders made payments to individuals, including $174,159 to Mahamud and $726,566 for real property purchases and $359,020 to other companies associated with Mahamud.

Court documents indicate that on February 10, 2026, Mahamud notified the Minnesota Department of Children, Youth and Families that she was abruptly closing her center.

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Former NY Sales Director Sentenced to Prison in $70M Medicare Brain Scan Scheme

A former New York-based sales director for the Northeast region of a mobile medical diagnostics company was sentenced on Feb. 13, 2026, in federal court in Boston for conspiring to offer and pay kickbacks to doctors in exchange for ordering medically unnecessary brain scans.

The scheme resulted in fraudulent bills of about $70.6 million to Medicare. Medicare paid approximately $27.2 million to the TCD company for the fraudulent claims.

James Rausch, 57, of Point Jefferson Station, N.Y., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to eight months in prison, to be followed by one year of supervised release. The defendant was also ordered to pay $17.5 million in restitution, forfeiture in the amount of $408,437 and a $20,000 fine.

 In June 2025, Rausch pleaded guilty to one count of conspiracy to violate the anti-kickback statute.

From March 2015 through at least September 2020, Rausch conspired with others, including two managers for a mobile medical diagnostics company that performed transcranial doppler (TCD) scans, to enter into kickback agreements with various doctors. 

TCD scans are brain scans that measure blood flow in parts of the brain. 

Rausch and his co-conspirators agreed to offer and pay doctors kickbacks, some in cash and others by check, based on the number of TCD ultrasounds the doctors ordered. The co-conspirators created purported rental and administrative service agreements, which on paper made it appear as if doctors were compensated for the TCD company’s use of space and administrative resources of the ordering doctor’s practice based on fair market value and not based on the volume or value of referrals. These were sham agreements that hid the true nature of the arrangement of paying per test.  

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