Four Individuals Charged in Northern District of Texas with Health Care Fraud Schemes Totaling over $210 Million as part of National Takedown

WASHINGTON , The Justice Department today announced the results of its 2025 National Health Care Fraud Takedown, which resulted in criminal charges against 324 defendants, including 96 doctors, nurse practitioners, pharmacists, and other licensed medical professionals, in 50 federal districts and 12 State Attorneys General’s Offices across the United States, for their alleged participation in various health care fraud schemes involving over $14.6 billion in intended loss. The Takedown involved federal and state law enforcement agencies across the country and represents an unprecedented effort to combat health care fraud schemes that exploit patients and taxpayers. Demonstrating the significant return on investment that results from health care fraud enforcement efforts, the government seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets as part of the coordinated enforcement efforts.

As part of the whole-of-government approach to combating health care fraud announced today, the Centers for Medicare and Medicaid Services (CMS) also announced that it successfully prevented over $4 billion from being paid in response to false and fraudulent claims and that it suspended or revoked the billing privileges of 205 providers in the months leading up to the Takedown. Civil charges against 20 defendants for $14.2 million in alleged fraud, as well as civil settlements with 106 defendants totaling $34.3 million, were also announced as part of the Takedown. Today’s Takedown was led and coordinated by the Health Care Fraud Unit of the Department of Justice Criminal Division’s Fraud Section and its core partners from U.S.

Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA). The cases were investigated by agents from HHS-OIG, FBI, DEA, and other federal and state law enforcement agencies. The cases are being prosecuted by Health Care Fraud Strike Force teams from the Criminal Division’s Fraud Section, 50 U.S.

Attorneys’ Offices nationwide, and 12 State Attorneys General Offices. “This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake to this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.” “These individuals lined their own pockets, egregiously stealing beneficiaries’ identities and pillaging the coffers of federal programs,” said Acting U.S.

Attorney Nancy Larson. “We will never tolerate this behavior and will relentlessly pursue prosecution of these offenders to the fullest extent possible. We applaud the tremendous work of our law enforcement partners in this National Takedown, whose diligent efforts dismantled layers of complex financial transactions created by these bad actors attempting to conceal their fraudulent conduct.” “As part of making healthcare accessible and affordable to all Americans, HHS will aggressively work with our law enforcement partners to eliminate the pervasive health care fraud that bedeviled this agency under the former administration and drove up costs,” said Secretary Robert F.

Kennedy Jr. of the Department of Health and Human Services. “The scale of today’s Takedown is unprecedented, and so is the harm we’re confronting. Individuals who attempt to steal from the federal health care system and put vulnerable patients at risk will be held accountable,” said HHS-OIG Acting Inspector General Juliet T.

Hodgkins. “Our agents at HHS-OIG work relentlessly to detect, investigate, and dismantle these fraud schemes. We are proud to stand with our law enforcement partners in protecting taxpayer dollars and safeguarding patient care.” “The Criminal Division is intensely committed to rooting out health care fraud schemes and prosecuting the criminals who perpetrate them because these schemes: (1) often result in physical patient harm through medically unnecessary treatments or failure to provide the correct treatments; (2) contribute to our nationwide opioid epidemic and exacerbate controlled substance addiction; and (3) do all of that while stealing money hardworking Americans contribute to pay for the care of their elders and other vulnerable citizens,” said Matthew R.

Galeotti, Head of the Justice Department’s Criminal Division. “The Division’s Health Care Fraud Unit and U.S. Attorneys’ Offices stand united with our law enforcement partners in this fight, and we will continue to use every tool at our disposal to protect the integrity of our health care programs for the American people.” “Health care fraud drains critical resources from programs intended to help people who truly need medical care,” said Director Kash Patel of the FBI.

“Today’s announcement demonstrates our commitment to pursuing those who exploit the system for personal gain. With more than $13 billion in fraud uncovered, this is the largest takedown for this initiative to date. Together, the FBI and our law enforcement partners will continue to hold those accountable who steal from the American people and undermine our health care systems.” “The perpetrators of this fraud used deceptive tactics and their access to beneficiary information to personally profit off government-sponsored health insurance programs.

These programs provide critical care and services to individuals in our communities that need it most,” said FBI Dallas Special Agent in Charge R. Joseph Rothrock. “The FBI and our law enforcement partners will continue to identify and investigate the pervasive health care fraud schemes that cost taxpayers tens of billions of dollars annually.” Cases Charged in the Northern District of Texas As part of the 2025 National Health Care Fraud Takedown, four defendants were charged by indictment in the Northern District of Texas with collective fraudulent billing of approximately $210 million submitted to federally-funded programs and other insurers, announced Acting United States Attorney for the Northern District of Texas Nancy E.

Larson. Those charged include: • Demitrious Gilmore , 46, of Lubbock, Texas, was charged by indictment with conspiracy to commit health care fraud in connection with the submission of false and fraudulent medical claims for various benefits, items, and services that were ineligible for reimbursement, not medically necessary, not performed, or not provided. As alleged in the indictment, Gilmore, the owner of WM Wellness, LLC and Gilmorehands, Inc. d/b/a Work-Med, submitted the claims to the Department of Labor Office of Workers Compensation Program ("DOL-OWCP"), which administers workers’ compensation benefits to federal employees who suffered an injury, disease, or death in the performance of duty.

Gilmore is alleged to have conspired with another physician and a former United States Postal Service employee and union official to submit the false and fraudulent claims. The alleged false claims include claims for knee braces, including several instances where "DOL-OWCP" was billed for multiple expensive custom knee braces for a single claimant; physical therapy, including an instance where "DOL-OWCP" was billed for multiple hours of physical therapy while the claimant was having knee surgery; as well as platelet rich plasma treatments and at-home ultrasonic devices that were not medically necessary, never provided, and/or not provided as represented. In all, Gilmore and his co-conspirators submitted approximately $19 million in false and fraudulent claims to "DOL-OWCP", of which at least approximately $17 million was paid.

Over $1 million was seized from bank accounts controlled by Gilmore. The U.S. Postal Service Office of Inspector General and DOL-OIG investigated the case.

The case is being prosecuted by Assistant U.S. Attorney Renee Hunter of the U.S. Attorney’s Office for the Northern District of Texas. • Gary Martin , 62, of McKinney, Texas, was charged by indictment with conspiracy to solicit or receive kickbacks for referrals to a federal health care program and solicitation and receipt of kickbacks in connection with the submission of over $73 million in false and fraudulent medical claims to Medicare for over-the-counter COVID-19 (“OTC COVID-19”) tests in 2023.

As alleged in the indictment, Martin, the owner of medical clinics, conspired with health care providers and other individuals to pay and receive kickbacks based on Medicare reimbursements for OTC COVID-19 tests. In order to bill Medicare for the claims, Martin and his co-conspirators are alleged to have provided Medicare patient information, to which they had access, to co-conspirators without the Medicare beneficiaries’ knowledge or consent and/or notwithstanding that they had not requested any OTC COVID-19 tests. In fact, as alleged in the indictment, in numerous instances the beneficiary was deceased.

Once Medicare paid the claim, Martin’s co-conspirator allegedly paid a kickback based on the reimbursement. Martin’s co-defendant, Damon Heath Roberts, previously pled guilty to conspiracy to pay or offer to pay kickbacks for referrals to a federal health care program in connection with the scheme and is awaiting sentencing. The Federal Bureau of Investigation’s Dallas Field Office and Department of Health & Human Services’ Office of Inspector General conducted the investigation.

The case is being prosecuted by Assistant U.S. Attorney Renee Hunter of the U.S. Attorney’s Office for the Northern District of Texas. • Khadeer Khan Mohammed , 44, a citizen of India, was charged by indictment with health care fraud in connection with a scheme to submit false and fraudulent medical claims to Medicare for genetic testing that was allegedly never requested, ordered and/or performed.

As alleged in the indictment, Mohammed, the owner of American Premier Labs LLC, located in Richardson, Texas, used the personal identifying information of physicians with no relationship to the Medicare beneficiaries, and without the physicians’ knowledge or consent, to submit the false and fraudulent claims to Medicare. In all, Mohammed caused the submission of approximately $93 million in false and fraudulent claims, of which approximately $65 million was paid, including payment of approximately $13 million over a single ten-day period in 2023. Nearly $6 million was seized from bank accounts controlled by Mohammed.

The Federal Bureau of Investigation’s Dallas Field Office and Department of Health & Human Services’ Office of Inspector General conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Renee Hunter of the U.S.

Attorney’s Office for the Northern District of Texas. • Olatunbosun Osukoya , 67, of Plano, Texas, was charged by indictment with conspiracy to commit health care fraud in connection with the submission of over $25 million in false and fraudulent medical claims to Medicare, TRICARE, and other insurers for electroencephalogram (EEG) testing. As alleged in the indictment, Osukoya, the owner of Ayo Biometrics, LLC d/b/a Cambridge Diagnostics, sought out individuals with insurance plans to undergo expensive EEG testing and recruited and paid kickbacks and bribes to physicians and others to refer patients to Cambridge Diagnostics. To conceal the scheme and to make it appear that the services were necessary, Osukoya and his co-conspirators allegedly falsified diagnoses and falsely labeled kickback payments as loans, medical directorships, and consultation fees, among other things.

Osukoya, through Cambridge Diagnostics, was paid over $5 million for the claims and is alleged to have paid out over $450,000 in illegal kickbacks. The Federal Bureau of Investigation’s Dallas Field Office and Department of Health & Human Services’ Office of Inspector General conducted the investigation. The case is being prosecuted by Assistant U.S.

Attorney Renee Hunter of the U.S. Attorney’s Office for the Northern District of Texas. Additional charges across the country involved a variety of fraudulent medical billing schemes, as noted below: Transnational Criminal Organizations 29 defendants were charged for their roles in transnational criminal organizations alleged to have submitted over $12 billion in fraudulent claims to America’s health insurance programs.

For instance, a nationwide investigation known as Operation Gold Rush resulted in the largest loss amount ever charged in a health care fraud case brought by the Department. These charges were announced in the Eastern District of New York, the Northern District of Illinois, the Central District of California, the Middle District of Florida, and the District of New Jersey against 19 defendants. Twelve of these defendants have been arrested, including four defendants who were apprehended in Estonia as a result of international cooperation with Estonian law enforcement and seven defendants who were arrested at U.S. airports and the U.S. border with Mexico, cutting off their intended escape routes as they attempted to avoid capture.

The organization allegedly used a network of foreign straw owners, including individuals sent into the United States from abroad, who, acting at the direction of others using encrypted messaging and assumed identities from overseas, strategically bought dozens of medical supply companies located across the United States. They then rapidly submitted $10.6 billion in fraudulent health care claims to Medicare for urinary catheters and other durable medical equipment by exploiting the stolen identities of over one million Americans spanning all 50 states and using their confidential medical information to submit the fraudulent claims. As alleged, the organization exploited the U.S. financial system by laundering the fraudulent proceeds and