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.

The Northeast Strike Force, led by Acting Assistant Chiefs Miriam Glaser Dauermann and Patrick J. Campbell, will coordinate closely with the Eastern District of Pennsylvania’s Health Care Fraud Section, led by Assistant U.S. Attorneys Tony Scicchitano and Paul Shapiro, to establish the new office of the Strike Force. The Philadelphia Strike Force will work in partnership with the HHS Office of Inspector General, the Federal Bureau of Investigation, the Drug Enforcement Administration, and other law enforcement partners.

Officials emphasized that the Eastern District of Pennsylvania is a strategic location for this enhanced effort. Philadelphia and surrounding areas are home to robust health care technology and insurance sectors. The District has long been a venue for private litigation that can surface unlawful corporate conduct for law enforcement scrutiny. Further, the Eastern District has been an epicenter of complex healthcare prosecution for decades. The Justice Department also highlighted a growing emphasis on corporate accountability—particularly targeting individuals and entities that allegedly use corporate structures to conceal fraud.

The announcement of the Philadelphia Strike Force included pointed remarks from federal and state leaders describing the real-world impact of home care fraud in Philadelphia. Assistant Attorney General Colin M. McDonald framed the issue as a direct threat to programs intended to support elderly and vulnerable patients, warning that the Philadelphia expansion and new charges signal an intensified enforcement posture. CMS Administrator Dr. Mehmet Oz stressed that Medicaid fraud harms taxpayers and patients alike, and said CMS is working with law enforcement while building safeguards to detect suspicious activity earlier. U.S. Attorney David Metcalf described alleged schemes involving caregivers who were not providing services—sometimes because they were deceased, incarcerated, or engaged in other criminal activity.

Special Agent in Charge of the FBI Philadelphia Field Office Wayne A. Jacobs underscored that health care fraud investigations require multi-agency coordination and pledged continued efforts to protect public funds and patient care:

Health care fraud is not a victimless crime – it undermines public trust and diverts critical resources from patients who need them. No single agency can tackle complex health care fraud schemes alone. Let today’s announcement be a warning to those engaging in similar activity: if you seek to exploit our health care systems for personal profit, you should expect the FBI and our partners to uncover your scheme and bring it to an end. Every dollar stolen through fraud is a dollar diverted from patient care, and the FBI will continue its work to safeguard the public’s trust and hold accountable those who abuse these vital programs.

The Strike Force approach has become one of the federal government’s most effective tools for rooting out health care fraud. The coordinated efforts of the Strike Force have resulted in the prosecution of more than 6,200 defendants who billed federal health care programs and private insurers over $45 billion. With the sophistication of the Philadelphia relator’s and defense bar, these figures are only expected to grow.