Charlotte, North Carolina, January 7, 2026
A federal investigation has targeted Cedric Dean, a prominent activist in Charlotte, North Carolina, following allegations of orchestrating a Medicaid fraud scheme through his company, Cedric Dean Holdings. Federal agents executed raids at various properties associated with Dean, collecting evidence of suspected fraud amounting to over $14 million. The investigation raises serious concerns about the exploitation of vulnerable individuals for Medicaid identification, leading to significant financial losses for the state. No arrests have been made yet, and the investigation is still ongoing.
Charlotte
Federal Investigation Targets Prominent Charlotte Activist in Healthcare Fraud Probe
Federal agents have recently conducted raids on properties associated with Cedric Dean, a prominent community activist in Charlotte, North Carolina, as part of an ongoing healthcare fraud investigation. The operations occurred on Thursday, according to reports surfacing in the last 48 hours. The Federal Bureau of Investigation (FBI) and SWAT teams were involved in executing court-authorized investigative activities at multiple locations, including Dean’s residence in the Palisades neighborhood, as well as other properties in Charlotte and Shelby, North Carolina.
The investigation centers on serious allegations that Dean and his company, Cedric Dean Holdings (CDH), orchestrated a widespread Medicaid fraud scheme. Authorities allege that between September 2024 and June 2025, CDH submitted claims totaling at least $14.5 million to Medicaid and received nearly $9 million in reimbursements. These reimbursements were allegedly for services that were never actually provided.
Allegations of Exploiting Vulnerable Individuals
The alleged scheme reportedly involved recruiting vulnerable individuals, including those experiencing homelessness in shelters, encampments, and halfway houses, to obtain their Medicaid identification numbers. These individuals were purportedly compensated with incentives such as food, temporary housing, or small payments in exchange for their personal Medicaid information. Court records further indicate allegations that Dean’s company billed for a significantly higher volume of services compared to other providers offering similar services. One comparison showed billing at an astonishing 894% more than the provider with the second-highest number of similar mobile crisis management claims.
Funds allegedly obtained through this fraud were then reportedly used to acquire various personal assets, including vehicles, jewelry, and multiple properties. Federal authorities are now seeking to seize these assets through civil forfeiture filings, aiming to recover the illicit gains. As of the recent reports, no arrests have been made in connection with the raids, and the investigation remains active and ongoing. An FBI spokesperson confirmed the presence of agents at the properties, describing their activities as “court-authorized investigative activity.”
Profile of Cedric Dean: Activist and Entrepreneur
Cedric Dean is widely known in Charlotte as an entrepreneur and community activist, particularly recognized for his advocacy in criminal justice reform, mental health support, and the implementation of violence prevention programs. He has publicly shared his personal history, including serving 28 years in prison before dedicating himself to reform efforts and community work. Dean is the founder of “Sons Against Violence Everywhere” and is often referred to as the “REENTRY KING” and a “Violence Interrupter and Peacekeeper,” reflecting his commitment to helping individuals re-enter society and reduce conflict.
Dean holds a National Provider Identifier (NPI) as a Prevention Professional. He is licensed to practice as a Prevention Professional in all 100 counties of North Carolina, focusing on critical areas such as suicide prevention, violence prevention, alcohol avoidance, drug avoidance, and tobacco prevention. His work also includes providing appropriate case management, mediation, referral, and mentorship services to address specific patient needs. This current federal investigation is distinct from a misdemeanor breaking and entering charge against Dean that was dismissed in early December 2025. That previous charge was related to a dispute with a tenant at a hotel he leased for a substance abuse recovery program.
Understanding Healthcare Fraud: A Nationwide Concern
The investigation into alleged healthcare fraud involving a community activist highlights a significant and ongoing challenge faced by federal authorities. Healthcare fraud is a serious Nationwide crime that affects individuals, businesses, and the economy as a whole. The FBI is the primary agency for investigating health care fraud for both federal and private insurance programs Nationwide. This type of fraud, involving intentional deception or misrepresentation within the healthcare system for illicit financial gain, results in billions of dollars in losses annually. These substantial financial losses can lead to increased health insurance premiums for everyone and may even expose individuals to unnecessary medical procedures.
Common forms of healthcare fraud include various deceptive practices by medical providers, patients, and other individuals. These can range from billing for services not rendered (phantom billing), to double billing (submitting multiple claims for the same service), upcoding (billing for a more expensive service than actually provided), and unbundling (submitting multiple bills for services that should be itemized as one). Fraud schemes can also involve patient identity theft or impersonating a healthcare professional to provide or bill for services without proper licensing.
Federal investigations into healthcare fraud are inherently complex and often commence when irregularities in billing practices or discrepancies in patient records are detected. Many investigations are initiated by whistleblowers—often insiders such as employees, patients, or even competitors—who report fraudulent activities to the government. Collaboration among several federal and state agencies is common, with the Department of Health and Human Services (HHS), its Office of Inspector General (OIG), and the Centers for Medicare & Medicaid Services (CMS) frequently working in tandem with the FBI to combat these crimes.
The investigative process typically involves extensive data gathering, interviews with potentially involved parties, and the execution of search warrants to seize electronic devices, medical files, and other relevant records. The objective is to meticulously comb through all information to build a comprehensive case. If substantial evidence of fraud is found, administrative actions, such as the suspension of provider payments, may be taken, and the case could proceed to civil or criminal prosecution. The ongoing investigation in Charlotte underscores the federal government’s commitment to rooting out healthcare fraud and protecting public funds intended for vital medical services.
Frequently Asked Questions (FAQ)
What is the main event reported?
The main event is the recent raids by federal agents on properties associated with Cedric Dean, a prominent community activist in Charlotte, North Carolina, as part of an ongoing healthcare fraud investigation.
Who is Cedric Dean?
Cedric Dean is an entrepreneur and community activist in Charlotte, North Carolina, known for his work in criminal justice reform, mental health support, and violence prevention programs. He is also a licensed Prevention Professional in North Carolina.
What specific allegations are being investigated?
The investigation involves allegations that Cedric Dean and his company, Cedric Dean Holdings (CDH), orchestrated a Medicaid fraud scheme by submitting false claims for services that were reportedly not rendered, totaling at least $14.5 million, and receiving nearly $9 million in reimbursements.
When did the raids occur?
The federal operations occurred on Thursday, as reported in the last 48 hours.
Have any arrests been made?
No arrests have been made in connection with the raids, and the investigation is ongoing.
What is the scope of healthcare fraud investigations by the FBI?
Healthcare fraud investigations are a Nationwide priority for the FBI, which is the primary agency for investigating health care fraud for both federal and private insurance programs Nationwide.
Summary Table: Key Features of the Alleged Healthcare Fraud Investigation
| Feature | Detail | Scope |
|---|---|---|
| Primary Subject of Investigation | Cedric Dean, a Charlotte community activist, and Cedric Dean Holdings (CDH) | Local |
| Nature of Allegation | Medicaid Fraud Scheme | State-level (North Carolina Medicaid) |
| Reported False Claims Submitted | At least $14.5 million (between Sept 2024 and June 2025) | State-level |
| Reported Reimbursements Received | Nearly $9 million (between Sept 2024 and June 2025) | State-level |
| Alleged Method | Recruiting vulnerable individuals for Medicaid IDs, billing for unrendered services | State-level |
| FBI Role in Healthcare Fraud | Primary agency for investigating health care fraud for federal and private insurance programs | Nationwide |
| Current Status | Ongoing investigation; no arrests made | Local |
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