National Fraud Enforcement Division’s Healthcare Fraud Unit Secures Six Trial Convictions Involving over $1.1 Billion in Fraud In Under Three Weeks: Convictions Span five[...]

The Justice Department's National Fraud Enforcement Division today announced that its Health Care Fraud Unit, one of the most active white-collar litigating components across the Department, secured federal jury trial convictions in six trials in just under three weeks. The convictions in six trials between May 13 and June 1 spanned federal courtrooms across the United States, including in Fort Lauderdale, Los Angeles, Detroit, New York and Nashville.

Six trial convictions in under three weeks ties the Health Care Fraud Unit record for number of trials to result in a conviction in a single month period. The cases behind these recent convictions, however, represent a greater level of sophistication and complexity: more than $1.1 billion in fraud losses across six distinct schemes, including a digital health platform that industrialized Medicare fraud at national scale, a proactive data-driven prosecution of a physician who out-billed every other Medicare provider in the country for Botox, and prosecutions requiring simultaneous command of health care data analytics, financial forensics, sophisticated digital evidence, and expert testimony. These results reflect not merely the volume of trials but the caliber of the Fraud Division's trial practice that carried each one of them to conviction. The Health Care Fraud Unit has completed nine trials to date in 2026 (all of which have resulted in convictions) and 17 trials in 2025, maintaining an extraordinary pace of white-collar trial activity.

The Health Care Fraud Unit operates through an integrated team model, pairing specialized trial-ready prosecutors with data analysts, investigators, and paralegals who work together from the opening of an investigation through the return of a verdict. Leadership reinforces this specialization and emphasis on trial preparation: specialized Assistant Chiefs for Trials oversee and support trial teams across the country, facilitating trial preparedness and institutional knowledge. The results demonstrated over this period reflect a team of trial lawyers who are prepared to take cases to trial and hold accountable those who defraud our nation's health care programs and steal from the American taxpayer.

"What sets the Fraud Division apart is not only our ability to proactively detect, investigate and dismantle fraud schemes before they cause further harm, but the depth and skill of the trial lawyers who carry those cases across the finish line. The American people should rest assured that we are prepared to seek accountability at trial for health care fraudsters, whether for a $1 million fraud in Michigan or a $1 billion fraud in South Florida," said Colin McDonald, Assistant Attorney General for the National Fraud Enforcement Division. "The Fraud Division is providing full-spectrum accountability to any fraudster who seeks to use Americans' hard-earned savings as their personal piggy-bank."

United States v. Blackman Trial Conviction(Industrial-Scale Telehealth Platform Fraud, $1 Billion):

Brett Blackman was the founder and CEO of HealthSplash, which owned DMERx, an internet platform that did not facilitate legitimate medicine but instead industrialized fraud. Foreign call centers blasted spam mailers targeting hundreds of thousands of Medicare's most vulnerable patients, pressuring elderly beneficiaries into accepting medically unnecessary orthotic braces. When patients agreed, DMERx connected the leads to telemedicine companies that took illegal kickbacks in exchange for signing bogus physicians' orders, orders that falsely certified a doctor had personally examined the patient, when in many cases the doctor never spoke with them at all. The government's undercover agent posed as a Medicare beneficiary and documented the scheme in real time: a foreign call center pushed the agent into multiple braces, and a DMERx doctor then signed orders claiming to have conducted in-person tests that are physically impossible to perform remotely. To conceal the conspiracy, Blackman and his co-conspirators manipulated physicians' orders to evade Medicare audits and used sham contracts to disguise kickback flows. All told, the scheme generated more than $1 billion in false billings, of which Medicare paid more than $450 million. Blackman was convicted of health care fraud conspiracy, kickback conspiracy, and conspiracy to defraud the United States. His co-defendant Gary Cox, convicted at a prior trial, was sentenced to 15 years in prison. (Southern District of Florida)

United States v. Mailyan Trial Conviction(Proactive Data Driven Lead for Botox Billing Fraud: Obstruction, Fabricated Records, $45 Million):

This prosecution began not with a witness or a complaint, but with a data anomaly. The Health Care Fraud Unit's Data Analytics Team identified Dr. Violetta Mailyan as a statistical extreme: she had been paid more by Medicare for Botox injections than any other physician in the United States, collecting more than $24 million over four years, roughly six times the next-highest provider group, all neurologists. What the data predicted, the trial evidence confirmed. Mailyan billed for thousands of Botox injections that were never administered, including while she was on vacation in Cabo, Mexico; Maui, Hawaii; Las Vegas; Pennsylvania; and New York. She billed for a patient who was federally incarcerated at the time of the purported injection. She submitted more than $19 million in claims on days when her clinic was closed. She back-dated claims to bill for injections purportedly provided before patients had even contacted her clinic to request an appointment. When federal investigators closed in and a grand jury subpoena arrived, Mailyan fabricated and back-dated patient consent forms and medical records and delivered the altered documents to agents, adding obstruction charges to the fraud counts. Post-verdict, the jury found a Tesla Model X, a Tesla Cybertruck, brokerage accounts valued at over $7.3 million, and four California properties subject to forfeiture as proceeds of the fraud. (Central District of California)

United States v. Scott Trial Conviction(Home Health Kickback Network: Hospital Nurse Bribed via CashApp, Stolen Patient Identities):

Ruby Scott, a licensed nurse and owner of Delta Home Health Care LLC in Michigan, built her patient pipeline by corrupting a hospital discharge nurse, a relationship she had first cultivated at a prior employer and then carried with her when she launched Delta. The nurse used her hospital access to identify Medicare patients and fax their confidential records to Delta without their knowledge or consent. Scott transmitted over $130,000 in illegal kickbacks to the nurse through CashApp, PayPal, check, and cash. Scott then used those stolen patient profiles to bill Medicare for home health services, falsely certifying that physicians had evaluated and cleared the patients as homebound, when in fact no physician had ever seen them for that purpose. Scott went further, appropriating the identities of real doctors to fabricate the existence of physician certifications those doctors never performed. A witness testified that one patient for whom Delta collected thousands of dollars in payments had never received any services from the company at all. Delta failed to maintain records for over one-third of its billed patients, patients for whom Medicare paid more than $1.2 million. Total losses exceeded $1.6 million. Scott was convicted of five counts of health care fraud, conspiracy, and four counts of paying illegal kickbacks. (Eastern District of Michigan)

United States v. Brown-Arkah Trial Conviction(Substance Abuse Clinic as Narcotics Hub: Narcotics Diversion, Undercover Video, $52 Million):

Tony Brown-Arkah owned American Medical Centers, a Brooklyn clinic nominally offering substance abuse treatment that functioned in practice as a vehicle for drug diversion, kickbacks, and large-scale fraud against Medicare and Medicaid. The clinic lured patients by prescribing Suboxone, a Schedule III narcotic used to treat opioid use disorder that, as a trial witness testified, is commonly abused by prison inmates by boiling the medication and administering it as eye drops, then directed patients who did not want their prescriptions to a van parked on the clinic steps where they could sell them for cash. Prescriptions were signed by a nurse practitioner who lived in Florida and never saw or spoke with patients. Laboratory results showing the absence of Suboxone in patients' systems, a significant clinical red flag for diversion, were ignored. Brown-Arkah billed Medicare and Medicaid for office visits where he, a non-clinician, was the only person who met with the patient, and for services that were never provided at all. He paid patients cash kickbacks to recruit additional patients and received thousands of dollars monthly from a laboratory in exchange for referring patients to unnecessary testing, concealing those payments through a shell company and sham contracts, and then lying to law enforcement about them. A confidential source captured Brown-Arkah on undercover video offering an illegal cash kickback, during which he described competitors who engage in the same conduct and observed, apparently without self-awareness: "that's why they go to jail." Total fraud losses exceeded $52 million across Medicare and Medicaid. (Eastern District of New York)

United States v. Popovych Trial Conviction(Physical Therapy Clinic Kickback Ring: Ambulette Drivers, Coded Texts, Falsified Records)

Olga Popovych managed a network of Brooklyn physical therapy clinics whose patient referral pipeline ran not through physician referrals but through cash payments to ambulette drivers, the operators who transported Medicare patients from their homes to therapy appointments. Popovych was personally involved in distributing the kickbacks and communicated about them with co-conspirators through coded text messages, having suspected law enforcement was watching the clinics. To conceal who was actually providing care, Popovych falsified medical records to indicate that licensed physical therapists had treated patients on days those therapists were not present at the clinic. Between 2018 and 2020, Medicare paid the clinics more than $8 million on the strength of those fabricated records. Evidence at trial also showed Popovych took steps to conceal the scheme when she suspected surveillance, communicating in code with co-conspirators about the payment of kickbacks. After a one-week trial, the jury convicted Popovych of conspiracy to commit health care fraud, conspiracy to make false statements, four counts of health care fraud, and three counts of making false statements relating to health care matters. (Eastern District of New York)

United States v. Marks Trial Conviction(Nurse Prescribed Nearly 1 Million Highly Addictive Opioid Pills to Tennessee Community)

Heather Marks was an Advanced Registered Nurse Practitioner who was licensed by the Drug Enforcement Agency (DEA) to distribute controlled substances. Marks prescribed controlled substances to patients seeking pain treatment at Lifeforce Pain and Wellness (Lifeforce), a pain clinic located in Carthage, Tennessee. Lifeforce was a small, rural clinic that purported to provide pain treatment. Marks and others overprescribed highly addictive opioids, including oxycodone and oxymorphone, to Lifeforce patients from September 2016 through May 2018. Marks herself prescribed nearly a million opioid pills to almost 1,000 Lifeforce patients over the course of the conspiracy. These patients were often addicted to illegal drugs and the opioids Marks and others prescribed to them at Lifeforce. Marks ignored obvious signs of Lifeforce patients taking illegal drugs at the time she prescribed them opioids, which put these patients in danger of overdosing. Marks further prescribed opioids to Lifeforce patients who she knew were likely selling the opioids on the street. Lifeforce patients would often travel hundreds of miles to obtain opioid prescriptions at Lifeforce because they knew Marks would prescribe the opioids they needed to either abuse or sell on the street. The jury convicted Marks of conspiracy to illegally distribute controlled substances and eight counts of illegally distributing controlled substances. (Middle District of Tennessee)

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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.

Since March 2007, the National Fraud Division's Health Care Strike Force program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.