DOJ Charges 400+ People for $6.5 Billion Healthcare Fraud

Published: Wednesday, June 24, 2026 at 3:16 am

DOJ Unveils Massive Healthcare Fraud Takedown, Over 400 Charged in $6.5 Billion Scheme

The Department of Justice has announced a sweeping crackdown on healthcare fraud, charging over 400 individuals in a nationwide operation that has allegedly defrauded Americans of at least $6.5 billion. The initiative, dubbed the 2026 National Health Care Fraud Takedown, represents a significant effort to combat widespread abuse within the healthcare system.

First Assistant U.S. Attorney for the Central District of California, Bill Essayli, revealed the scale of the operation via a post on X, stating that 455 defendants have been charged in connection with the alleged $6.5 billion in fraudulent activities. This coordinated effort, under the leadership of Vice President Vance and Deputy Attorney General Todd Blanche, targets various forms of healthcare fraud across the country.

Among those charged is Jeannie Choi, 57, who was arrested by the FBI's Los Angeles field office. Choi, along with Oren David Shachar, 59, and Abraham Shin, 66, are accused of orchestrating a hospice fraud scheme that resulted in Medicare paying out nearly $27 million in fraudulent claims.

According to details shared by Essayli, Shachar allegedly exploited the personal health data and medical records of deceased Medicare beneficiaries. He reportedly obtained this information through meetings with surviving relatives. Subsequently, Shachar is accused of directing staff to create false, backdated hospice records, fabricating evaluations and terminal certifications that never actually took place. To facilitate this scheme, Shachar allegedly paid Choi and Shin between $1,000 and $3,000 for each deceased beneficiary they fraudulently enrolled in hospice care.

Shachar and Shin have reportedly pleaded not guilty to the charges and are slated for trial in August. Choi was expected to make an initial appearance and be arraigned on Tuesday. The extensive nature of this takedown underscores the ongoing challenges in safeguarding public funds from fraudulent schemes, particularly within complex systems like healthcare.

BNN's Perspective: This large-scale enforcement action by the Department of Justice highlights the persistent threat of healthcare fraud and its substantial financial impact on the public. While the prosecution of individuals involved is a necessary step, the sheer volume of alleged fraud suggests a need for continued vigilance and potentially systemic improvements to prevent such widespread abuse. A balanced approach that combines robust enforcement with proactive measures to strengthen oversight and compliance within healthcare programs is crucial for long-term effectiveness.

Tags: DOJ, healthcare fraud, $6.5 billion, 400+ people charged, National Health Care Fraud Takedown, Medicare fraud, hospice fraud, Jeannie Choi, Oren David Shachar, Abraham Shin, FBI, Bill Essayli

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