WASHINGTON, D.C. — The Justice Department announced on Monday the arrest of 324 defendants nationwide, including 37 in South Florida, as part of the largest healthcare fraud crackdown in U.S. history. The defendants face allegations of submitting more than $14.6 billion in falsified bills to Medicare, Medicaid, and private insurers—more than double the previous record of $6 billion.
Among those arrested were 96 doctors, nurses, and pharmacists involved in fraudulent schemes exploiting stolen identities, kickbacks, and fabricated claims, particularly within medical equipment, genetic testing, and painkiller sectors.
Attorney General Pam Bondi condemned the defendants as “criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers.” During a news conference in Washington, FBI and Health and Human Services agents reported seizing over $245 million in cash, luxury vehicles, cryptocurrency, and other assets nationwide.
Despite these efforts, experts say the government still loses tens of billions annually due to improper Medicare and Medicaid payments, which include fraud, waste, and abuse. The Centers for Medicare and Medicaid Services (CMS) reported reducing improper payments to 7.46% in fiscal year 2022, down from 9.51% in 2017. However, the total dollar amount of improper payments remains undisclosed.
South Florida continues to be a hotspot for healthcare fraud. Here are several notable cases filed by the U.S. Attorney’s Office in Miami as part of the crackdown:
Dave Sudarshan Singh, 37, of Pembroke Pines, faces conspiracy charges for submitting false Medicare claims worth over $14.1 million for over-the-counter COVID-19 tests, including tests billed for deceased beneficiaries. Singh’s business, MDP Products and Services, allegedly received around $13 million from Medicare for these fraudulent claims.
Lazaro Delgado, 59, of Miami, was charged with conspiracy to commit healthcare fraud for billing Medicare and Medicaid nearly $9 million in false claims for orthotic braces on behalf of beneficiaries who did not need them. Delgado reportedly used front companies and placed nominal owners to facilitate the scheme.
Marlen Veliz Rios, 58, owner of Loves Community Health Mental Health Inc. in Hialeah, faces charges of healthcare fraud and conspiracy to launder money. She allegedly billed over $15.3 million for unnecessary wound care and skin graft products, with Medicare paying about $10 million. Authorities seized $4.6 million linked to her accounts during the investigation.
The nationwide operation highlights ongoing challenges in protecting federal healthcare programs and preventing abuse of taxpayer dollars.
