The Office of the Attorney General of Texas announced on Friday the largest health care fraud takedown in U.S. history, “resulting in criminal charges against 30 defendants.”
AG Ken Paxton’s Medicaid Fraud Control Unit (MFCU) worked with federal agencies to dismantle more than a dozen fraudulent healthcare operations across Texas. The schemes involved $177 million in fraudulent billings and 10 million unlawfully diverted opioid pills.
The massive takedown highlights how criminal enterprises exploit taxpayer-funded programs while flooding communities with dangerous prescription drugs. The schemes also included $1.7 million in illegal kickbacks.
“In Texas, we fight fraud head-on and will not rest until every last corrupt actor is brought to justice,” said Paxton. “Together with President Trump and dedicated people at the Department of Justice, we are dismantling criminal enterprises that steal from taxpayers and endanger lives.”
The enforcement action was part of a broader national initiative targeting health care fraud. More than 30 Task Force Officers and Special Assistant U.S. Attorneys from Paxton’s unit partnered with federal law enforcement.
Charges included conspiracy to commit health care fraud, unlawful distribution of controlled substances, and anti-kickback violations.
Paxton emphasized that “Medicaid fraudsters exploit our health care systems for personal gain and drain resources from the citizens who need them most.”
MFCU has recovered over $1 billion since 2020. That represents a 2,889% return on investment for Texas taxpayers over the last five years. The unit receives 75% of its funding from federal health grants totaling $22.8 million for fiscal year 2024. Texas provides the remaining $7.6 million.