National Health Care Fraud Enforcement Action Results in 455 Defendants Charged and Over $6.5 Billion in Intended Fraud Loss Charged

DETROIT - Today, United States Attorney Jerome F. Gorgon, Jr. announced criminal charges and civil resolutions in connection with six cases involving alleged schemes to defraud health care programs, including Medicare and Medicaid. The charges were filed in federal court and are part of the Department of Justice's 2026 National Health Care Fraud Enforcement Action. The criminal charges stem from the fraudulent billing of Medicare and Medicaid. The civil cases resolve alleged violations of the False Claims Act by several health care providers.

The charges announced today by United States Attorney Jerome F. Gorgon, Jr., 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. Today's Takedown represents 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 involves 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.

Today's coordinated enforcement action involves 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.

"These schemes represent a direct attack on the integrity of federally funded health care programs. Fraudulent billing, false claims, and the failure to return federal funds are unacceptable and a blatant abuse of programs meant to support the American public," said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. "We will continue to hold accountable anyone who seeks to exploit Medicare, Medicaid, or any other taxpayer supported system."

"Safeguarding the integrity of federal health care programs is central to our mission, and the results of this year's National Health Care Fraud Takedown reflect the strength of our collective commitment. The cases announced today demonstrate not only the scale, but the seriousness of the misconduct uncovered, ranging from patient harming schemes to multibillion dollar fraud operations," said Department of Health and Human Services Inspector General T. March Bell. "HHS-OIG will continue to pursue those who engage in such conduct and hold them accountable. I am grateful for the tireless work of our special agents and for the partnership we share with our federal, state, and local law enforcement colleagues as we work together to protect patients and preserve public funds."

The following individuals were charged in the Eastern District of Michigan:

Hasan "Lucas" Seyhun, 45, of Miami, Florida, was charged by indictment with conspiracy to commit healthcare fraud and conspiracy to launder monetary instruments in connection with an alleged $566 million billing fraud related to Fast Lab Technologies. As alleged in the First Superseding Indictment, Seyhun, as Fast Lab's Chief Operating Officer, conspired with its CEO (previously charged defendant Cemhan "Jimmy" Biricik) and Medical Director (previously charged defendant Dr. Martin Perlin) to submit health insurance claims for laboratory testing services related to Covid-19 tests that were either not rendered at all or not provided as represented. The First Superseding Indictment also charges Seyhun and Biricik with an additional conspiracy, to both conceal and subsequently launder the proceeds of the health care fraud scheme. The First Superseding Indictment includes significant forfeiture allegations, with specific allegations of property subject to forfeiture that include: a personal aircraft, six high-end vehicles, numerous bank accounts, miscellaneous jewelry and designer handbags, and a residence in Boca Raton, Florida. The case is being prosecuted by Assistant United States Attorneys Regina R. McCullough and Ryan A. Particka of the U.S. Attorney's Office for the Eastern District of Michigan.

Emad Hamdan, 55, of Dearborn Heights, Michigan, and Raeyfah Baiz, 41, of Canton, Michigan were charged by way of an information with conspiracy to commit health care fraud for a pharmacy shortage scheme that caused at least $1.9 million in loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan. Rabih Hamdan, owner of Medex Pharmacy (Medex), created a scheme to submit false and fraudulent claims for prescriptions that were not medically necessary or not actually dispensed. In many instances, his pharmacy lacked the inventory to dispense these drugs but billed the health care insurers as though they were dispensed. As alleged in the charging documents, Emad Hamdan was one of the supervisors at Medex. He directed Baiz and others to submit false and fraudulent claims to Medicare, Medicaid, and Blue Cross Blue Shield on behalf of Medex. As alleged in the charging documents, Raeyfah Baiz was the pharmacist-in-charge, who maintained a national provider identifier for the purposes of submitting claims to Medicare, Medicare drug plan sponsors, Medicaid, Medicaid health plans, and BlueCross BlueShield. Baiz partnered with Rabih Hamdan and Emad Hamdan to submit false and fraudulent claims to Medicare, Medicaid, and Blue Cross Blue Shield on behalf of Medex. The case is being prosecuted by Assistant United States Attorney Jason Dorval Norwood of the U.S. Attorney's Office for the Eastern District of Michigan.

Christopher Dzialo, 35, of Reno, Nevada (previously of Grosse Pointe Farms, Michigan) was charged by Indictment with mail fraud and healthcare fraud in connection with a scheme to submit false pharmacy and medical insurance claims for high-reimbursement drugs that were never prescribed and services that were never rendered. As alleged in the indictment, between June 2023 and July 2025, Dzialo submitted at least eight fraudulent Direct Member Reimbursements (DMR) to his own insurance provider, seeking repayment for alleged out of pocket expenses. These claims either were for prescriptions he never obtained or medical procedures he never received, with an alleged value of $158,514.39. The case is being prosecuted by Assistant United States Attorneys Ryan A. Particka and Aleksandrs K. Bomis of the U.S. Attorney's Office for the Eastern District of Michigan.

Reno Dandy, a/k/a/ "RJ", 28, of Eastpointe, Michigan; and Francina Kirk, a/k/a/ "Keisha", 45, of Pontiac, Michigan were charged in a superseding indictment with conspiracy to possess with intent to distribute and to distribute controlled substances in connection with their roles in an unlawful scheme to distribute Schedule II and V controlled substances Oxycodone, Oxycodone-Acetaminophen (Percocet), Hydrocodone-Acetaminophen (Norco), Oxymorphone, and Promethazine with Codeine. As alleged in the indictment, medical clinics were organized and purported to operate at different locations in Southeast Michigan, including Grace Medical Clinic, PLLC (Grace). Grace was operated by Dandy and Kirk, and Dr. Chinoy was a prescriber at Grace. Dandy, Kirk, and other co-conspirators coordinated opioid controlled substance prescribing to Grace "patients" by, among other things, receiving "patient" information, loading "patient" information into Grace's electronic prescribing platform, collecting payments from "patients" or patient recruiters/marketers, and sending electronic and other payments to Dr. Chinoy. From in or around November 2023 to on or about March 5, 2024, Dr. Chinoy electronically issued opioid controlled substance prescriptions to Grace "patients" without seeing, examining, or communicating with the "patients," and instead Dr. Chinoy did so as directed by and based on patient information provided by Dandy, Kirk, and co-conspirators. During the conspiracy more than 400,000 dosage units of Schedule II and Schedule V controlled substances were unlawfully prescribed, which carried an estimated wholesale street value of more than $7 million. The case is being prosecuted by Assistant United States Attorneys Sarah Youngblood and Regina R. McCullough of the U.S. Attorney's Office for the Eastern District of Michigan. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative to combat the opioid epidemic.

The civil matters included in the Takedown included settlements with the following entities and individuals:

McLaren Health Care Corporation and related entities (McLaren) of Michigan, agreed to pay a total of $1.9 million to resolve a qui tam False Claims Act lawsuit. The settlement resolves allegations that McLaren failed to timely repay overpayments from federally funded healthcare programs during the period from January 1, 2016, through June 18, 2021. The matter was handled by Assistant United States Attorney John Postulka of the U.S. Attorney's Office for the Eastern District of Michigan.

Jason Herzog, the former CEO of Avertest, LLC, d/b/a Averhealth, a nationwide drug testing company located in Glen Allen, Virginia, reached a civil settlement to pay $150,000 to resolve allegations that in his capacity as CEO of Averhealth, he violated the False Claims Act when he knowingly submitted, or caused the submission of, false claims for payment on behalf of Averhealth to the Michigan Department of Health and Human Services, and knowingly made false statements material to those claims, concerning improper positive oral fluid drug test results. The case was settled by Assistant U.S. Attorney Anthony Gentner of the U.S. Attorney's Office for the Eastern District of Michigan.

The cases are being prosecuted by the Health Care Fraud Section'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 District of Arizona, Central District of California, Eastern District of California, Northern 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 Idaho, Northern District of Illinois, District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of Nevada, District of New Hampshire, District of New Jersey, District of Nex Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Western District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Western District of Pennsylvania, 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, Eastern 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 in Alaska, Arizona, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Inidiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, and Wisconsin.

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

The Eastern District of Michigan, in particular, worked with the Department's Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and the FBI.

An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.