Federal Charges Announced in Multi-Million Dollar Medicaid Fraud Scheme and Prescription Drug Diversion Conspiracy; Announcement Made as Part of Justice Department’s National[...]

Milwaukee, Wisconsin - Brad D. Schimel, First Assistant United States Attorney for the Eastern District of Wisconsin, announced charges issued in the Eastern District of Wisconsin as part of a strategically coordinated, nationwide law enforcement action.

The first charge announced was against Jasmine Cooper, 37, of Brown Deer, Wisconsin, who is charged by information with health care fraud and aggravated identity theft in connection with a scheme to defraud Wisconsin Medicaid. As charged in the Information, Cooper, who was authorized to run a prenatal care coordination agency (PNCC) to assist at risk pregnant women and women with children, submitted thousands of false claims in which she claimed her company provided much-needed services that beneficiaries never received. Throughout the scheme, Cooper misstated the duration, frequency, date, and nature of services provided. Cooper submitted these false claims to Wisconsin Medicaid between 2019 and 2022. The Information also charges that as part of her scheme to defraud, Cooper committed aggravated identity theft by using the means of identification of another person without lawful authority.

As a result of the scheme, Cooper submitted over $5.8 million in fraudulent claims to Wisconsin Medicaid, of which over $5.4 million was paid. On the same day that charges were filed, the United States also filed a signed plea agreement indicating Cooper's intention to plead guilty to the charges. A change of plea hearing is scheduled for July 9, 2026, at 10:00 before the Honorable Chief District Judge Pamela Pepper.

Cooper's charges come on the heels of four similar schemes charged by the Eastern District of Wisconsin. Combined with the charges against Cooper, these fraudulent schemes have cost Wisconsin Medicaid over $15.5 million between 2019 and 2022. Cooper's case, as well as the similar PNCC-related schemes were investigated by the Federal Bureau of Investigation with substantial assistance from the Wisconsin Department of Justice Medicaid Fraud and Elder Abuse Control Unit. The cases are being prosecuted by Assistant U.S. Attorneys Kate M. Biebel and Julie F. Stewart.

The second charge was against Jerry Jones III, 70, of Mequon, Wisconsin. Jones was charged by information with conspiracy to distribute controlled substances. As alleged in the information, Dr. Jones was a medical provider authorized by the Drug Enforcement Administration to distribute controlled substances as part of a legitimate medical purpose.

Instead, between January 2021 and September 2025, Dr. Jones conspired to distribute controlled substances such as amphetamine-dextroamphetamine, methylphenidate, buprenorphine, diazepam, lorazepam, alprazolam, and pregabalin outside the usual course of professional practice and not for a legitimate medical purpose. As part of the conspiracy, Dr. Jones distributed 12,885 pills of Adderall, 8,121 pills of Ritalin, 143,282 units of Schedule III controlled substances, 35,944 units of Schedule IV controlled substances, and 12,374 units of Schedule V controlled substances.

On the same day that charges were filed, the United States also filed a signed plea agreement indicating that Dr. Jones intends to be plead guilty to the charges. A change of plea hearing is scheduled for June 29, 2026, at 11:15 a.m. before the Honorable Lynn Adelman. As part of the plea agreement Dr. Jones agreed to forfeit $294,850.72 in proceeds of the unlawful conspiracy. The case was investigated by the Drug Enforcement Administration Diversion Investigations Unit. It is being prosecuted by Assistant U.S. Attorney Julie F. Stewart.

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The charges announced by First Assistant United States Attorney Schimel are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death.

The nationwide takedown, announced on June 23, 2026, represented a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI's Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme.

The Takedown involved the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor's offices to corporate boardrooms.

The nationwide enforcement action involved a whole-of-government approach, including:

• Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.

• 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General ("HHS-OIG") under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.

• Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.

• 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.

The cases are being prosecuted by the Health Care Fraud Unit's National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys' Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General's Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia.

Descriptions of each case involved in the nationwide enforcement action are available on the Department's website here.

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.

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For further information contact:

Public Affairs Officer Steve Caballero

(414) 297-1700

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