News Summary
Federal authorities have conducted a massive crackdown on healthcare fraud, leading to the arrests of nine individuals in North and South Carolina. A total of 324 people faced charges nationwide, many accused of conspiring to defraud Medicaid. The operation follows alarming statistics of $14.6 billion in false claims identified across the nation. Various healthcare providers have settled allegations, further emphasizing the commitment to uphold the integrity of healthcare programs and recover misappropriated funds.
Nationwide Healthcare Fraud Crackdown Leads to Arrests in North and South Carolina
Charlotte, N.C. — On June 30, federal authorities announced a major nationwide crackdown on healthcare fraud that resulted in the arrests of multiple residents in North and South Carolina. As part of this extensive operation, a total of 324 individuals were charged across the nation, with nine local suspects facing serious allegations of conspiring to defraud Medicaid programs.
The arrested individuals are accused of buying and selling information related to Medicaid beneficiaries, allegedly submitting reimbursement claims for patients who did not receive any services. In total, seven of the local suspects have been charged with conspiracy to commit healthcare fraud and engaging in illegal kickbacks. The severity of the situation is underscored by the $5 million in settlements reached through civil enforcement actions to resolve allegations under the False Claims Act.
Key Arrests and Charges
Among those charged is David Corey Hill, 54, from Concord, who faces separate charges of conspiracy to commit healthcare fraud and money laundering. He intends to plead guilty. Crystal Sherrell Jackson, 39, from Charlotte, has also been implicated in healthcare fraud and money laundering for submitting false claims to North Carolina Medicaid.
Tina Marie Armstrong, 67, from Florence, S.C., is charged with healthcare fraud and aggravated identity theft in relation to fraudulent claims for durable medical equipment. Additionally, Dee Alice Moton, 51, from Hephzibah, Ga., is accused of healthcare fraud related to unauthorized billing of the Veterans Administration for services never rendered, amounting to a staggering $2,373,147.22.
Impact of the Crackdown
The operation is a continuation of ongoing efforts in combatting healthcare fraud, which has led to alarming findings nationally. Over the years, authorities have identified more than $14.6 billion in false claims and seized assets exceeding $245 million linked to these fraudulent activities. Criminal schemes have included filing thousands of false claims for behavioral health care services. A particularly significant case involved eight suspects in South Carolina accused of generating over $21 million in losses to the Medicaid program between 2017 and 2024.
Four of these suspects are from North Carolina, including Donald Calvin Saunders, Dajuan Strickland, Latarsa Hitchcock, and David Corey Hill. Other suspects linked to the scheme include Vanessa Ragin-Boatright, Cynthia Jenkins Harris, and Karen McClary from South Carolina, as well as Stephanie Corbett from Georgia.
Civil Settlements and Large Claims
Several clinics and healthcare providers have settled allegations of fraud, which include substantial financial assessments. The Nirvana Hyperbaric Institute, owned by Roger Hunter, faced scrutiny and paid $200,000 for submitting claims related to inadequate supervision of hyperbaric oxygen therapy treatments. Meanwhile, Steven Osbey, a clinic owner in Charlotte, settled allegations involving over $4.7 million in fraudulent claims against NC Medicaid.
LabXperior Corporation and its owner, Tina Ball, paid a settlement of $235,000 for billing NC Medicaid for unnecessary urine drug tests, while Benson I. Ejindu confronted a False Claims Act complaint for submitting false claims for durable medical equipment. Authorities are actively pursuing measures to ensure that those found guilty are held accountable and that misappropriated funds are recovered.
Background on the Nationwide Efforts
This crackdown represents one of the largest healthcare fraud takedowns in U.S. history. Federal and state officials are committed to continuing investigations and enforcement actions to recover stolen funds and uphold the integrity of healthcare programs. The importance of these efforts is reflected in the significant national response to fraudulent activities that undermine public trust and tax-payer funded programs.
As the investigation continues, authorities are urging anyone with information related to Medicaid fraud to come forward, reinforcing a collective responsibility to spot and prevent such crimes against vital healthcare systems.
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Additional Resources
- WBTV News
- Wikipedia: Healthcare Fraud
- Spectrum Local News
- Google Search: Healthcare Fraud 2025
- Charlotte Observer
- Google Scholar: Healthcare Fraud
- QC News
- Encyclopedia Britannica: Healthcare Fraud
- WCCB Charlotte
- Google News: Healthcare Fraud Arrests
- WSPA News
