Justice Department Charges 455 in $6.5 Billion Healthcare Fraud Sweep, Spotlighting Cardiovascular Screening Scheme
Key Insights
The Justice Department announced criminal charges against 455 individuals in a two-week crackdown involving over $6.5 billion in false claims submitted to insurers.
A Florida cardiologist is charged in an $89 million scheme involving medically unnecessary cardiovascular screening tests for college student-athletes, with results rubber-stamped without review.
One teenage patient whose significantly enlarged heart went undetected later died on the basketball court, according to the indictment.
The Justice Department unveiled criminal charges Tuesday against 455 people as part of a sweeping two-week healthcare fraud enforcement action that officials say involved more than $6.5 billion in false claims submitted to insurers. The announcement, made alongside the Trump administration's broader anti-fraud initiative, underscores an intensifying federal focus on prosecuting schemes that prosecutors say steal not only taxpayer dollars but also human dignity.
"Today's cases allege more than the theft of taxpayer dollars. Many allege the theft of human dignity," said Colin McDonald, the newly appointed assistant attorney general overseeing healthcare fraud prosecutions, at a news conference announcing the crackdown. "Our sick, needy and elderly placing their faith in the gift of medicine were neglected, ignored and used for personal profit."
Cardiologist Charged in $89 Million Student-Athlete Screening Scheme
Among the most striking cases is that of Dr. Jason Finkelstein (search), a 53-year-old Texas-based cardiologist charged in Florida with healthcare fraud and conspiracy. Prosecutors allege Finkelstein orchestrated an $89 million scheme between 2019 and the end of last year, billing insurers for medically unnecessary cardiovascular screening tests performed on college student-athletes and then certifying the results as normal without personally reviewing them.
The indictment describes a scheme that preyed on athletes' fears of sudden cardiac arrest (search) on playing fields or courts. Finkelstein and two unidentified co-conspirators at a Florida-based cardiovascular testing and treatment practice, where he served as medical director, allegedly used deceptive marketing tactics to encourage and offer free heart screens for students who did not need them.
According to the indictment, Finkelstein's co-conspirators sent emails to athletic trainers at colleges and universities stating that the tests could identify any life-threatening condition that could prevent students from playing. They also allegedly offered kickbacks and other inducements to school officials to refer potential patients for testing.
To circumvent insurance requirements that mandate a prior finding of medical necessity for cardiovascular testing, prosecutors say Finkelstein submitted phony diagnoses — including elevated blood pressure and hypertension (search) — that the athletes did not actually have. The company relied on sonographers who lacked requisite credentials to travel to college campuses and perform the tests. Because Finkelstein was licensed in the 48 contiguous states, he and his company were able to submit claims for patients across the country.
The indictment quotes Finkelstein as telling an unnamed co-conspirator: "These kids could be high risk ... one of them drops dead on a field, they're coming after both of us."
Fatal Consequences of Rubber-Stamped Results
In one instance in 2024, according to the indictment, Finkelstein signed off on approximately 63 test result images of one patient just 11 seconds after accessing them. The test results actually revealed a significantly enlarged heart, and the teenage patient later died on the basketball court, officials said.
"There is no way they could miss that, except they didn't care," said Dr. Mehmet Oz, a cardiothoracic surgeon by training and head of the Centers for Medicare & Medicaid Services (search). "This is not a diagnostic company. It's a predatory scheme dressed up in medical clothing and we're going to treat it as such."
Finkelstein pleaded not guilty during a court appearance in Florida on Monday. His attorney did not return messages seeking comment.
Broader Fraud Enforcement Actions
The cases, charged or unsealed since June 8, span a range of alleged schemes. A nurse practitioner in Texas is accused of billing Medicare (search) for medically unnecessary wound-care procedures and using the proceeds for jewelry and luxury cars. A mental health company owner allegedly targeted the homeless by billing for crisis stabilization services they did not receive. A hospice owner is accused of paying kickbacks to a funeral home employee for information about deceased Medicare beneficiaries.
Administration Expands Anti-Fraud Measures
Vice President JD Vance on Wednesday announced additional steps in the administration's fraud-busting initiative, including a $1.3 billion deferral in Medicaid (search) funding to California. Oz characterized the move as the "largest deferral we've ever made" in Medicaid funds, citing questionable expenditures and anomalies such as a higher rate of growth in California's home care program compared with other states.
The press office of Gov. Gavin Newsom, D-Calif., disputed the claims, stating the home care program grew because the state is "keeping more people OUT of far more expensive nursing homes."
CMS also announced a nationwide six-month moratorium on all new Medicare (search) enrollments by providers of hospice and home care. "Today we're shutting the door on fraud — preventing new bad actors from entering Medicare while we aggressively identify, investigate, and remove those already exploiting them," Oz said in a statement.
Tricia Neumann, a senior vice president at the healthcare research nonprofit KFF, noted that such a freeze is not unprecedented, pointing to a temporary moratorium on home health agencies during the Clinton administration. "A brief moratorium gives the administration time to crack down on true fraud and prevent new fraudulent entities from popping up," she said.
The National Alliance for Care at Home, the country's largest organization advocating for home healthcare providers, said it supports efforts to root out fraud but prefers targeted strategies to a sweeping moratorium, citing concerns about access to care, reduced competition, and slowed innovation.
The Department of Health and Human Services' internal watchdog also sent letters to state attorneys general warning them to vigorously investigate possible fraud or risk losing federal money. In recent months, CMS has suspended payments to hundreds of hospice and home care agencies in Los Angeles and halted some $243 million in Medicaid (search) payments to Minnesota over fraud concerns.