The Takedown of Philly Fraud

On August 4, 2026, the Justice Department’s National Fraud Enforcement Division announced the initiation of a new Strike Force to aggressively combat Medicaid fraud in Philadelphia, Pennsylvania. This expansion of the Division’s Northeast Health Care Fraud Strike Force, in conjunction with the expansion of the West Coast Strike Force, displays the government’s commitment to investigating and prosecuting healthcare fraud.

DOJ Trade Fraud Task Force Hits $1 Billion Milestone in Short Order

On July 14, 2026, the Department of Justice (DOJ) announced that its Trade Fraud Task Force (TFTF) had exceeded $1 billion in recoveries and charged losses, a remarkable figure considering that the TFTF was established just under a year prior in August 2025.  The TFTF attributed its output to a mixture of “rigorous criminal prosecution and civil enforcement under the False Claims Act (FCA),” confirming that whistleblowers continue to turbocharge enforcement in the customs arena.

Laboratory Fraud: The Gift That Keeps On Giving

Takeaway: Laboratory fraud continues to be pervasive in the healthcare industry.

Every sector of the healthcare industry relies upon laboratory testing. Lab tests are used to diagnose virtually all illnesses and conditions ranging from the common flu to cancer.

Governor Shapiro Uses his Annual Budget Address to Call for Pennsylvania to Finally Pass a State False Claims Act

In a move to fortify the Pennsylvania treasury’s defenses against fraud, Governor Josh Shapiro utilized his 2026-2027 Budget Address earlier today to call for the creation of a Pennsylvania state False Claims Act (“FCA”).  Federal and state FCAs allow the government to seek enhanced damages against fraudsters and offer whistleblowers awards for exposing fraud against the government.

Recent False Claims Act Settlement Should Put Treatment Centers on Notice

Late last month, the federal government announced a False Claims Act settlement with Summit BHC New Jersey, LLC, d/b/a Seabrook (“Seabrook”), a prominent New Jersey Drug & Alcohol Rehabilitation facility. The joint settlement with the New Jersey Attorney General’s Office, in the amount of $19,751,762.69, covered claims submitted by Seabrook under the Medicaid program and Department of Veterans Affairs benefit programs.

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