The Justice Department announced charges against 19 defendants in Philadelphia for allegedly defrauding Medicare and Medicaid of more than $4 million, expanding its healthcare fraud strike force into Pennsylvania to combat criminals exploiting taxpayer-funded programs.

Strike Force Expansion Targets Philadelphia Fraud

The Justice Department established a new strike force office in the Eastern District of Pennsylvania on Tuesday, combining resources from the National Fraud Enforcement Division and the U.S. Attorney’s Office. The announcement came alongside charges against 19 individuals, including home health care company owners, employees, purported aides, and Medicaid recipients accused of submitting fraudulent claims totaling over $4 million to federal healthcare programs.

Pennsylvania Attorney General Dave Sunday simultaneously announced a plea agreement with the final defendant in a separate 21-defendant case involving more than $1.7 million in fraudulent claims. The dual announcements underscore intensified scrutiny of healthcare fraud in the Philadelphia region, where authorities claim criminals hide behind legitimate corporations to steal from taxpayers.

Impossible Hours and Phantom Care

Federal prosecutors detailed brazen schemes where home health aides allegedly billed Medicaid while incarcerated, hospitalized, working other jobs, or traveling overseas. One Medicaid recipient claimed extensive home health assistance while simultaneously working as a carpenter. Investigators uncovered billing records showing overlapping or physically impossible work hours, including claims exceeding 24 hours of care within a single day.

A home health care agency and its owners face charges for allegedly submitting false clock-in and clock-out records to Medicaid. The fraudulent billing schemes exploited programs designed to help vulnerable Americans requiring legitimate medical assistance, diverting millions in taxpayer dollars intended for those genuinely needing care.

Nationwide Enforcement Effort

The Philadelphia expansion follows recent strike force additions in California, Arizona, Nevada, Massachusetts, and Minnesota. The Justice Department conducted two major national healthcare fraud enforcement actions in 2025 and 2026, addressing alleged losses exceeding $15 billion and $6 billion respectively. The Philadelphia office will coordinate with the Department of Health and Human Services Office of Inspector General, the FBI, the DEA, and other federal agencies.

The Justice Department emphasized its commitment to using every available legal tool to identify, investigate, and prosecute offenses against American taxpayers. The partnership between federal fraud investigators and Pennsylvania authorities represents enhanced federal resources for a district with established healthcare fraud enforcement traditions, targeting schemes that undermine programs serving citizens who depend on government healthcare assistance.