Medicare Faces $10.6 Billion Fraud Network Indictment

A U.S. federal indictment was issued on June 27, 2025, against an Eastern European group involved in a $10.6 billion fraud targeting Medicare.

The group allegedly operated between August 2022 and September 2024 by acquiring medical equipment companies authorized to bill Medicare and submitting false claims for equipment like urinary catheters and glucometers to over a million individuals using stolen personal data.

Many policyholders discovered they were listed as recipients of equipment they never received nor had prescriptions for, leading to reports of fraudulent Medicare claims. The network is also accused of money laundering tied to these fraudulent activities and is facing charges related to health insurance fraud. This case highlights significant vulnerabilities in Medicare's claims verification process, impacting regulatory and compliance frameworks within the healthcare payer system.