Justice Department’s Major Fraud Takedown

The Department of Justice announced the largest healthcare fraud takedown in U.S. history, charging 455 defendants across 45 states. The allegations involve theft totaling $6.5 billion from Medicare and Medicaid through various fraudulent schemes, including false wound care claims. Some of the illicit gains funded luxury homes and vehicles, such as a $135,000 Maserati.

Federal authorities faced significant fraud cases in Southern California. Among these was a nearly $270 million fraudulent scheme against Medi-Cal. Another involved an approximate $27 million Medicare fraud.

Scope of the Operation

The charges are part of the Justice Department’s expansive “2026 National Health Care Fraud Takedown,” noting a combined federal and state effort described by Acting Attorney General Todd Blanche as unprecedented. Blanche emphasized that fraudsters will not go unpunished. “We will find you, seize any assets, and prosecute you fully,” he stated.

Key Southern California Cases

In the Central District of California, ten defendants were criminally charged. They include allegations of defrauding healthcare programs or illegally prescribing controlled substances. Five individuals were arrested in the Los Angeles area, accused of submitting nearly $270 million in fraudulent claims to Medi-Cal. The scheme involved expensive drugs that were either unnecessary or never dispensed.

Among the charged is Christina Mareik, also known as Christina Marie Sanchez Hernandez, alleged to have facilitated fraudulent prescriptions. These prescriptions generated substantial claims, leading Medi-Cal to payout over $178 million.

Other Defendants

Prosecutors also named Oren David Shachar, Abraham Shin, and Jeannie Choi in a 16-count indictment. This group allegedly conspired to defraud Medicare out of approximately $27 million using hospice care companies.

The charges against these individuals include healthcare fraud, identity theft, monetary transactions from criminally derived funds exceeding $10,000, and Anti-Kickback Statute violations.