U.S. DOJ charges four alleged members of a Bronx criminal enterprise over a $12M Medicaid fraud and money laundering scheme

Prosecutors allege that the “War Room” fabricated transport records for Medicaid patients travelling to methadone clinics, including by using GPS-spoofing technology to create false pickup and drop-off data. Patients were allegedly paid kickbacks in cash and drugs for use of their information, while collusive transportation companies submitted fraudulent reimbursement claims; the defendants are also accused of laundering the resulting proceeds. Three participating transportation companies alone submitted more than $12 million in unmatched Medicaid claims.