United States Attorney Alina Habba has announced a series of criminal charges and civil settlements against 15 defendants in New Jersey as part of the Department of Justice’s 2025 National Health Care Fraud Takedown. The charges involve schemes to defraud Medicare, Medicaid, TRICARE, and private health insurers through unnecessary prescriptions and fraudulent reimbursements.
Habba stated, “My Office, in lockstep with the Department’s nationwide Health Care Fraud Takedown, is cracking down on corrupt physicians, pharmacies, and healthcare providers who exploit Medicare and Medicaid with shameless kickback schemes.”
Attorney General Pamela Bondi emphasized the administration’s stance against such fraud: “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.”
The operation led to charges against 324 defendants across the United States for alleged participation in fraud schemes totaling over $14.6 billion. Among those charged were 96 medical professionals including doctors and pharmacists.
In New Jersey, Alan Vaughan was charged with conspiracy related to a scheme involving durable medical equipment and cancer genetic tests that caused Medicare a loss exceeding $80 million. Taejin Kim faced charges for submitting false claims to Amtrak’s health care plan. Nestor E. Jaime was indicted for fraudulent prescription drug claims submitted to Medicare.
Several entities also settled allegations of submitting false claims for reimbursement. Newark Beth Israel Medical Center agreed to pay $250,000 regarding its Heart Transplant Program. Excel Pharmacy Inc., QuickRx LLC, Raghu Ram Inc., Rachit Drug Inc., and Premier Dental Holdings among others agreed to various settlement amounts.
HHS-OIG Acting Inspector General Juliet T. Hodgkins highlighted the effort’s impact: “The scale of today’s Takedown is unprecedented… Our agents at HHS-OIG work relentlessly to detect, investigate, and dismantle these fraud schemes.”
Special Agent Stefanie Roddy from the FBI noted the importance of coordinated efforts: “Today’s announcement provides insight into the complex nature of the health care fraud threat…”
Mike Waters from Amtrak emphasized accountability: “We hope these actions serve as a deterrent for health care providers…”
The enforcement involved multiple U.S. Attorneys’ Offices across various districts along with State Attorneys General Offices prosecuting cases in coordination with federal agencies like HHS-OIG and FBI.
A complaint or indictment remains an allegation until proven guilty beyond reasonable doubt in court.
