DOJ Criminal Division’s Fraud Section 2025 Year in Review Touts Record Takedown, More Corporate Cases, and an Expanded Mission

DOJ Criminal Division’s Fraud Section 2025 Year in Review Touts Record Takedown, More Corporate Cases, and an Expanded Mission

The US Department of Justice (DOJ) Criminal Division’s Fraud Section released its 2025 Year in Review (YIR) on January 22, touting a historic year in fraud enforcement. The announcement focused on the most notable efforts by the Fraud Section in 2025, including the largest health care fraud takedown in DOJ history, as we discussed in July, which charged defendants with over $14.6 billion in intended loss. The Fraud Section also reported having brought 15 corporate enforcement actions, including the first corporate indictments in more than 15 years and the most corporate indictments in a single year. 

The YIR also highlighted sustained Foreign Corrupt Practices Act enforcement in a way that, consistent with the Deputy Attorney General’s June 2025 guidance, “vindicates U.S. interests[.]” The Fraud Section additionally reported key achievements in other priority areas, such as variable interest entities and trade and tariff fraud. Per the YIR, in total, the Fraud Section charged 265 defendants (representing an over 10% increase from the prior year), conducted 25 trials, and brought 15 corporate enforcement actions, resulting in a combined resolution amount of over $1 billion. 

The Fraud Section also emphasized its expansion in 2025 to include the criminal portfolio and personnel of the former DOJ Consumer Protection Branch, which was previously housed in the Civil Division and handled both civil and criminal matters. According to the YIR, with the addition of former Consumer Protection Branch personnel, the Fraud Section now has more than 200 attorneys and is poised to more effectively prosecute white-collar offenses across priority areas, including those that impact health and safety.

Looking ahead, the Fraud Section signaled a continued focus on corporate accountability and the use of emerging technology to effectively prosecute white-collar crime.

Read the DOJ’s press release here.

Traditions Health Pays $34 Million to Resolve FCA Allegations Tied to Home Health and Referrals

The DOJ announced that Traditions Health LLC agreed to pay $34 million to resolve False Claims Act (FCA) allegations tied to home health services. From 2021 to 2024, Traditions allegedly submitted medically unnecessary Medicare home health claims from its McAlester, Oklahoma, location. The government alleges that Traditions additionally provided illegal remuneration to physician medical directors in Oklahoma and Texas between 2019 and 2024 in connection with referrals, implicating the Anti-Kickback Statute (AKS) and the Physician Self-Referral (Stark) Law. 

The DOJ credited Traditions for timely self-disclosures in September 2024 and April 2025 and for its cooperation throughout the investigation. The DOJ also noted that Traditions conducted an independent investigation that led to remedial actions, including removing employees responsible, enhancing its compliance program, and providing additional training to employees. According to the DOJ, these self-disclosure efforts helped to mitigate the consequences faced by Traditions.

Read the DOJ’s press release here.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

North Carolina Announces $8.8 Million Resolution With Bethany Medical Center Over UDT Billing

North Carolina Attorney General Jeff Jackson announced that Bethany Medical Center, P.A., and its founder, Lenin Peters, M.D., agreed to pay over $8.8 million to resolve federal and state FCA allegations tied to urine drug testing (UDT) practices. The settlement resolves allegations that, from January 1, 2018, through July 31, 2023, Bethany ordered monthly, medically unnecessary UDTs for opioid therapy patients regardless of individualized need and failed to use the UDT results in clinical care. The tests were allegedly paid for by Medicare, Medicaid, and TRICARE. 

The case was originally filed by a former Bethany employee in 2020 under the qui tam or whistleblower provisions of the FCA in the Western District of North Carolina. The federal government and the state of North Carolina intervened in May of 2025. The parties jointly stipulated to dismiss all claims under the terms of a settlement agreement on January 20. 

The case is United States ex rel. Badger v. Bethany Medical Center, P.A., et al., No. 5:20-cv-00086 (W.D.N.C.).

Read the North Carolina Attorney General’s press release here.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Florida Lab Owner Pleads Guilty in $52 Million Medicare Genetic Testing Fraud

Sean Alterman, owner of Live Beyond Medical MGMT, LLC and Dynix Diagnostics LLC, pleaded guilty on January 15 to conspiracy to commit health care fraud and conspiracy to pay kickbacks linked to a scheme to defraud Medicare. He faces up to 15 years in prison.

According to court documents, Alterman submitted over $52 million in false Medicare claims for medically unnecessary genetic tests. As part of the scheme, Alterman purchased doctors’ orders from patient recruiters who ran deceptive telemarketing campaigns to persuade beneficiaries to consent to tests. Recruiters used “doctor chasing” — faxing physicians misleading prescription requests purporting to involve a mutual patient — to obtain signatures, even though beneficiaries were not examined for the conditions tied to the tests. 

Alterman’s laboratories received approximately $36 million in payments from Medicare based on false claims. Alterman personally made roughly $5.5 million, routed through shell companies. As part of his plea agreement, Alterman forfeited a home and luxury car purchased with funds traced to the scheme. He is scheduled for sentencing on April 16. 

Read the DOJ’s press release here.

Court Enters FCA Judgment Against JMG Investments and Owner Over Duplicate PPP Loans

The US District Court for the Central District of California granted summary judgment against JMG Investments Inc., a California rehabilitation center, and its owner, Jeffrey Schwartz, citing FCA and Paycheck Protection Program (PPP) rule violations on January 15. The PPP is an emergency loan program administered by the US Small Business Administration, and was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help small businesses during the pandemic.

The case was originally filed by a relator under the qui tam or whistleblower provisions of the FCA. The United States intervened and filed a complaint against JMG and Schwartz in August 2024, alleging that they improperly received two PPP loans in violation of PPP rules in 2020. The district court agreed with the government’s assertion that JMG and Schwartz wrongfully retained and failed to repay the duplicate PPP loan. The court awarded the United States over $1.5 million in damages and penalties.

The case is United States ex rel. Quesenberry v. JMG Investments, Inc., et al., No. 20-cv-8497-MWF (ASx) (C.D. Cal.).

Read the DOJ’s press release here.

DOJ and USPS Announce First-Ever $1 Million Antitrust Whistleblower Reward Tied to Online Auto Auctions

The DOJ Antitrust Division announced its first-ever whistleblower reward of $1 million for information that led to criminal antitrust and fraud charges against EBLOCK Corporation, operator of an online used-vehicle auction platform. The charges were resolved through a deferred prosecution agreement (DPA) in which EBLOCK agreed to pay a $3.28 million criminal fine and implement remedial compliance measures. 

The DPA states that after acquiring another online auction platform, “Company A,” in November 2020, EBLOCK failed to promptly halt a bid‑rigging conspiracy between legacy employees at Company A and employees at Company B. The DPA further states that this conspiracy suppressed and eliminated competition for used vehicles sold on Company A’s platform in violation of the Sherman Act, 15 U.S.C. § 1, and that conspirators also facilitated “shill bidding” — placing fake bids to inflate sale prices — in violation of 18 U.S.C. § 1343. Finally, the DPA states that this was all done for co-conspirators to pool and split profits.

Relevant documents were transmitted through the US mail, prompting coordination between the Antitrust Division and the US Postal Inspection Service. 

Read the DOJ’s press release here.