Federal authorities have busted what they say is a $30 million fraud conspiracy involving billing for children's behavioral health services that were never provided, officials announced at a news conference in Ohio on Thursday.
All four defendants involved in the case turned themselves in to authorities this week, a source familiar with the investigation told CBS News
As part of the investigation, 14 vehicles were seized, including a Maserati, a Mercedes, a Bentley and a McLaren, according to the source.
The defendants are alleged to have offered therapeutic behavioral services and psychotherapy to young adults and children who were attending summer camps, church groups and recreational programs, according to the source.
The alleged ringleaders diagnosed every single recipient with a behavioral adjustment disorder, which allowed them to profit off the vulnerable children, according to the source. But no assessment testing was ever done, the behavioral services never occurred, and the kids never got any care.
Participants were required to complete "intake packets" and provide their Medicaid recipient number, which are required to bill for the services, according to the source.
A medical assessment was also required, but, according to the source, the defendants didn't conduct a single test.
A spokesperson for Vice President JD Vance called the allegations disgusting in a statement to CBS News.
"It is disgusting that fraudsters were allowed to deprive essential developmental services from American children in need," the spokesperson said. "Countless lives could have been made better by the millions of tax dollars stolen, but instead they were used to purchase luxury cars. This is another example of the type of fraud the Vice President's task force is putting a stop to."
The Department of Justice carried out the enforcement on behalf of the anti-fraud task force, part of the Trump administration's efforts to target fraud. Republicans and Democrats have traded barbs about who is responsible for creating circumstances that allow for fraud and who is doing more to fix it.
CBS News has been investigating multiple forms of fraud for months. One investigation into hospice fraud examined the business and financial records of every hospice currently operating in Los Angeles County, applying the same indicators identified by state auditors as potential red flags for fraud. The analysis revealed that over 700 of the roughly 1,800 hospices in Los Angeles County trigger multiple red flags for fraud as defined by the state.
Fraud in Minnesota has also been a focus of the Trump administration. CBS News has investigated the state's biggest fraud scheme to date, and interviewed the alleged mastermind, 45-year-old Aimee Bock.
In an exclusive interview from her jail cell, Bock defended her conduct, admitted regrets and argued that state officials who she worked with should bear some of the blame. It was the first time Bock spoke publicly since she was arrested for her role in what prosecutors say was a $250 million COVID-era effort to defraud a federal program to feed hungry children.
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