Federal Probes Target Fraud in Taxpayer-Funded Programs

A federal investigation put New York City social adult day care providers under scrutiny Tuesday. Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz, the FBI, NYPD and other agencies delivered letters and conducted searches linked to alleged Medicaid fraud. More than 80 providers received CMS warning letters over questionable billing, according to the documentary “War on Fraud.”

The 27-minute film follows Oz across the country, describing investigations into alleged fraud involving Medicare, Medicaid, hospice care and other programs. Fox News Digital said it first obtained the film. It was scheduled for release Wednesday at 4 p.m. ET on Oz's X account. HHS Secretary Robert F. Kennedy Jr. and CMS Deputy Administrator Kim Brandt also appear.

“All these programs come back to one basic issue: Fraudsters and criminals don't give a s--- about you. They want your money, and they will walk all over your health, sacrifice your life and betray society's trust to get your hard-earned money,” Oz says in the video.

Billing Under Investigation

Oz cited alleged irregularities at social adult day care centers. These included low attendance despite high Medicaid billing, questionable wheelchair-transportation charges, seniors entering without signing in, inconsistent attendance claims and sign-in sheets with future-dated entries. The FBI, HHS Office of Inspector General, NYPD and other agencies took part in the investigation.

An FBI spokesperson said, “FBI New York, along with multiple other law enforcement agencies are conducting law enforcement activity in the area of Queens, Staten Island, Brooklyn and other locations around New York City in connection with ongoing federal investigations.”

The documentary also identifies hospice care as a potential fraud area. Oz cited roughly 2,000 hospice providers in the Los Angeles area, a concentration he said raised concerns about fraudulent billing. He alleged Russian organized-crime groups took part in some suspected operations, and said operators sometimes enrolled patients under false pretenses, including falsely declaring them terminally ill. According to Oz, patients could lose access to treatment while operators billed Medicare for services under false pretenses.

Federal prosecutors described a separate alleged $3.7 billion Medicare-fraud scheme involving medical-equipment companies in Delray Beach, Florida. They allege the companies billed for equipment patients hadn't requested or needed. The alleged ringleader fled the country. Authorities captured him in Turkey and returned him to South Florida to face federal charges.

Other Alleged Public-Benefit Schemes

Oz called businesses in Flushing, Queens, including a social adult day care center, pharmacy and medical center, a “clubhouse for crooks.” He alleged the businesses took seniors' identification numbers and used them to submit fraudulent bills. “They recruit seniors, get them in, game the system and they use their ID numbers to charge everybody, ‘which means they are charging you,’” Oz said.

Minnesota has drawn attention in the administration's wider government-benefits fraud crackdown following the $250 million “Feeding Our Future” scandal. The case came to national attention in 2022 and has since produced a wave of federal convictions. The White House Task Force on Fraud, led by Vice President JD Vance, has joined Oz in publicizing alleged schemes.

In Massachusetts, prosecutors accused U.S. citizen Jennifer Gonzalez of arranging sham marriages for immigrants seeking legal status. Leah Foley, the U.S. attorney for the Massachusetts District, said Gonzalez allegedly collected up to $40,000 per marriage and arranged as many as 20 marriages a year over the last decade. Her female employees, who also faced charges, allegedly married clients. Foley said the alleged conspiracy “netted her $6 million during the course of the alleged scam.”

Foley said Gonzalez applied for and received more than $124,000 in SNAP benefits from 2019 through 2026. Prosecutors allege she failed to report income from the marriage business or list other household members. The Justice Department said Gonzalez, Pugh, Tavares and two other alleged conspirators were arrested Wednesday morning; Hill was already in state prison for a gun offense. The case remains an allegation.