LA Fraud Takedown: 15 Charged in Sham SUD Treatment, Hospice, and Medicare Schemes

Federal prosecutors charged 15 defendants, including six medical professionals, with $2 billion in fraudulent billing across sham substance abuse treatment, unnecessary surgical procedures, hospice fraud, and pharmacy schemes in Los Angeles. The SUD-specific case alleges patient trafficking, body-brokering, insurance manipulation, and kickbacks totaling $1.6 billion billed to private insurers through facilities that provided little or no actual treatment. DEA's Diversion unit participated in the SUD and pharmacy fraud investigations.