Open the Books exposed yet another insight into the stinking, rotten catastrophe that is the massive, systematic, and continuing stealing from American taxpayers via an unknown number of federal social service programs that for decades have all but hung in their windows signs saying “Come Steal.”
Earlier this month, the headline on the Open the Books website proclaimed “Hidden Fees: Taxpayers on the Hook for Foreign-Linked Health Care Fraud Schemes.” Here’s what was found:
In January 2026, Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz alleged that roughly $3.5 billion worth of fraud, so far unconfirmed, was happening through false hospice billings in a scheme he attributed in large part to what he called the ‘Russian Armenian mafia.’
So, Open the Books took a look at Oz’s claims, what fraud could be confirmed, and its cost to taxpayers. It turns out Russian and Armenian-linked fraud has cost taxpayers almost $1 billion in confirmed losses from Medicare and Medicaid, part of a Department of Justice operation dubbed ‘Operation Gold Rush.’
So now we must add the Russian-Armenian Mafia to the Somali robbing of Medicaid billions in Minnesota and Ohio, and whatever ethnicity may be the thieves behind the similarly systematic filching in California and Maine. And let’s not forget the Mexican Drug Cartels almost certainly have their greasy fingers in this long-running criminal enterprise, too.
Thus far, 11 individuals involved in the transnational criminal operation have been charged by the Department of Justice (DOJ) in Operation Gold Rush, which is the largest health care fraud case ever charged by federal officials. The criminals bought medical equipment firms, then submitted fraudulent Medicare claims using more than 1 million stolen Americans’ names.
Only 11 people charged? There were 324 individuals charged nationwide by the DOJ last year, and the total thus far in 2026 isn’t known. But let us assume DOJ doubles its 2025 level and takes 648 individuals to federal court for defrauding Medicare, Medicaid, Social Security, Veterans Affairs, SNAP/Food Stamp, and who knows how many more federal benefit programs? And we haven’t even mentioned fraud in Department of Defense procurement.
Given the international scope of the waste and fraud, one might reasonably expect that thousands of criminals are involved who should be identified, charged, convicted, and imprisoned. According to GAO in 2024, the government loses as much as $521 billion annually to fraud, but expects that estimate to spiral as the DOJ’s current anti-fraud effort goes forward.
Whatever the final number of individuals charged with fraud, or engineering improper payments, or committing contract fraud, that accounts for only one side of the problem. But there’s another side that nobody is talking about — what is the accountability of the thousands of federal workers employed in management or operational roles by the many benefit programs?
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