United States Attorney Alina Habba has announced criminal charges and civil settlements against 15 defendants as part of the Department of Justice’s 2025 National Health Care Fraud Takedown. These actions are related to alleged schemes involving Medicare, Medicaid, TRICARE, and private health insurers in New Jersey. The cases involve accusations against physicians and pharmacies for submitting reimbursements for unnecessary drugs, devices, and tests, as well as seeking payments for undelivered drugs.
"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," said U.S. Attorney Alina Habba.
Attorney General Pamela Bondi commented on the takedown: "This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens."
The coordinated law enforcement action led to charges against 324 defendants across 50 federal districts in the United States. Among those charged were medical professionals accused of participating in fraud schemes resulting in over $14.6 billion in intended loss.
In New Jersey specifically, several individuals have been charged or entered settlements:
- Alan Vaughan from the UK faces conspiracy charges related to a scheme involving kickbacks for durable medical equipment referrals.
- Taejin Kim from River Vale is charged with conspiracy to commit health care fraud by submitting false claims using Amtrak employees' insurance information.
- Nestor E. Jaime from Pine Brook is indicted for fraudulent prescription drug claims submitted to Medicare.
Several organizations have also agreed to financial settlements:
- Newark Beth Israel Medical Center will pay $250,000 over allegations of inadequate disclosure leading to unnecessary treatments.
- Excel Pharmacy Inc., QuickRx LLC, Raghu Ram Inc., Rachit Drug Inc., and Premier Dental Holdings have all agreed to pay various amounts totaling millions over allegations of fraudulent reimbursement claims.
HHS-OIG Acting Inspector General Juliet T. Hodgkins emphasized the unprecedented scale of the takedown: "Individuals who attempt to steal from the federal health care system and put vulnerable patients at risk will be held accountable."
Special Agent Stefanie Roddy noted the effort highlights professionalism among law enforcement partners working together on these complex cases.
The prosecutions involved multiple U.S. Attorneys’ Offices and State Attorneys General’s Offices across numerous states with assistance from various strike forces within the Health Care Fraud Unit's National Rapid Response Team.
A reminder was issued that all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.
