This Week in Fraud: DOJ’s New Fraud Division Announces Numerous Fraud Enforcement Actions and a New Strike Force to Investigate and Prosecute Fraud on the West Coast

Yesterday, Assistant Attorney General Colin McDonald of the Fraud Division announced the formation of the West Coast Health Care Fraud Strike Force, a multi-district initiative to increase resources dedicated to prosecuting health care fraud in California, Arizona, and Nevada. "Our message today and every day is simple: If you steal from the American taxpayer, the Department of Justice and our law enforcement partners will do everything possible to award you free housing in a federal prison," said Assistant Attorney General McDonald at the press conference. The Strike Force will surge at least 10 additional federal prosecutors to the region who will work in partnership with the HHS Office of Inspector General, the Federal Bureau of Investigation, the Drug Enforcement Administration, and other law enforcement partners.

In addition to this surge of resources to the West Coast, the Fraud Division is announcing the following fraud enforcement actions taken this week across the country to hold accountable those who defraud the American people.

Benefits Program Fraud

An illegal alien from Mexico was indicted in Albuquerque, New Mexico for allegedly using forged immigration documents and another individual's Social Security number to fraudulently obtain bank accounts, vehicle financing, and consumer loans while residing illegally in the U.S. The charges include fraud and misuse of a visa, social security fraud, and aggravated identity theft. If convicted, the defendant faces up to 10 years in federal prison.

Two Romanian illegal aliens pleaded guilty for their role in a conspiracy to steal SNAP benefits by using skimming devices to obtain EBT card data and PINs. The defendants used the stolen information to make fraudulent purchases of SNAP-eligible items, which they later shipped out of state. The defendants agreed to pay full restitution and now face potential federal prison sentences.

A federal judge sentenced Shermeca McCrary, a Johnston County Social Services caseworker, to six months in prison and three years of supervised release for her role in a scheme to steal over $100,000 in SNAP benefits. McCrary abused her position to access and divert funds intended for qualified recipients and was ordered to pay $102,000 in forfeiture.

A defendant in Cedar Rapids, Iowa-Joshua Brandon Johnson-was sentenced to 30 months in federal prison and two years of supervised release for laundering over $20,000 from a fraudulent Paycheck Protection Program (PPP) loan by withdrawing fraudulently obtained funds to evade child support garnishment. The defendant was ordered to pay $20,208 in restitution to the Small Business Administration.

In Indiana, Joseph M. Merk was sentenced to four and a half years in federal prison for stealing nearly $600,000 through multiple fraud schemes, including PPP loan fraud, identity theft, and tax evasion. He was ordered to pay more than $492,000 in restitution.

Health Care Fraud

A Michigan pharmacy technician pleaded guilty to a $5.6 million health care fraud scheme, admitting he billed Medicare, Medicaid, and private insurers for prescription drugs he never dispensed. He also illegally prescribed oxycodone to drug traffickers in exchange for cash, without regard to whether the prescriptions were actually prescribed by physicians or dispensed in good faith.

The U.S. government seized approximately $2 million from Expert Wound Care PC, a California-based clinic accused of submitting fraudulent Medicare claims for skin graft substitutes and services that were never provided. According to court documents, between September 2025 and April 2026, the clinic submitted over $46.6 million in claims-$34 million of which were approved-despite billing for procedures that didn't occur. The seizure was authorized by a federal court in Los Angeles.

Scam Centers

DOJ announced the coordinated takedown of scam centers leading to at least 276 arrests. These centers targeted Americans who have suffered millions of dollars in losses from such schemes.

Tax Fraud

Harry Lamar Curtis III, a Houston business owner and former CPA, was sentenced to 18 months in federal prison for failing to pay more than $1.6 million in payroll taxes due to the IRS. The defendant admitted that he failed to file required business and personal tax returns for many years while withholding taxes that were never remitted to the IRS.

Corporate & Financial Fraud

The Fraud Division announced the sentences of two former CEOs of a non-profit medical organization headquartered in Sharon, Pennsylvania, for defrauding the company of almost $2 million. The defendants were sentenced to 40 months' and 24 months' imprisonment for their crimes.

An Oregon payment processing broker, Jeremy Todd Briley, pleaded guilty to wire fraud for facilitating over $14 million in unauthorized debits and attempted debits from victims' bank accounts by providing services to sham companies posing as legitimate merchants. Between 2017 and 2023, he maintained payment processor relationships for the sham companies so that they could process fraudulent debits. Despite repeatedly receiving information that the debits processed on behalf of the sham companies were not authorized by the victims, Briley concealed the fraudulent activities of the sham companies in various ways, and he arranged for a payment processor to deceive banks by manipulating return rates on the fraudulent debits.

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On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.