CEDAR RAPIDS — Federal prosecutors announced a massive national health care fraud takedown this week, charging 455 defendants across the country in alleged schemes involving more than $6.5 billion in false claims, including criminal and civil cases connected to Iowa.
U.S. Attorney Leif Olson for the Northern District of Iowa announced the Iowa cases as part of the Department of Justice’s 2026 National Health Care Fraud Takedown. The nationwide enforcement action targeted alleged fraud against programs including Medicare, Tricare and the Veterans Community Care Program.
Federal officials said the takedown involved cases in 56 federal districts and 45 states and territories. Defendants include 90 doctors and other licensed medical professionals accused of participating in health care fraud and opioid-related schemes.
Authorities said the national operation included the seizure of more than $182 million in cash, luxury vehicles, jewelry and other assets. Federal agencies also took administrative action against health care providers, including suspensions, revocations of billing privileges, exclusions from federal programs and civil penalties.
In Iowa, federal prosecutors announced a criminal case involving a Cedar Rapids home care company and a civil enforcement action involving a Des Moines plastic and reconstructive surgery practice.
Hughes Home Care Inc., doing business as Synergy Homecare, and its owner, Jacob Hughes, 35, of Cedar Rapids, were indicted in connection with an alleged scheme to defraud the Veterans Community Care Program out of more than $350,000.
According to the indictment, Hughes and Synergy submitted claims for home health care services that were not actually provided to elderly and infirm veterans. Prosecutors allege the false claims included services billed after a veteran client had died.
Federal prosecutors further allege Hughes used proceeds from the scheme to pay sports gambling debts and other personal expenses.
That case is being prosecuted by Assistant U.S. Attorney Kyndra Lundquist.
A separate civil case was filed against Heartland Plastic & Reconstructive Surgery, P.C., and its owner, Eugene J. Cherny, of Des Moines. The complaint, filed with participation from both the Northern and Southern Districts of Iowa, seeks damages and civil penalties tied to alleged false pricing information submitted to Medicare.
Federal officials allege Heartland and Cherny gave Medicare false invoices for skin substitute products used to treat Medicare patients. Prosecutors said Medicare used those invoices to set reimbursement rates. The complaint alleges Medicare and Tricare paid Cherny more than $2 million based on the false information.
Assistant U.S. Attorneys Brandon J. Gray and Brian J. Keogh of the Northern District of Iowa and Andy Kahal of the Southern District of Iowa are representing the United States in that case.
The national takedown also included major actions by the Centers for Medicare and Medicaid Services, which suspended 1,079 providers and revoked billing privileges for 1,403 providers. The U.S. Department of Health and Human Services Office of Inspector General also announced civil monetary penalty settlements and provider exclusions.
The Drug Enforcement Administration has also pursued 928 administrative cases seeking to revoke authority to handle or prescribe controlled substances since October 1, 2025, according to federal officials.
Federal prosecutors said the Iowa cases involved work by the Department of Justice’s Health Care Fraud Unit, the Fraud Section of the Civil Division, the U.S. Attorney’s Offices for the Northern and Southern Districts of Iowa, the Iowa Attorney General’s Medicaid Fraud Control Unit, the FBI, the Department of Veterans Affairs Office of Inspector General, the Department of Health and Human Services Office of Inspector General and the Department of Defense Office of Inspector General.
The takedown also included international cooperation. Federal officials said defendants were apprehended or returned to the United States from Cyprus, Estonia and the Philippines in connection with large fraud cases, including alleged schemes involving billions of dollars.
Health care fraud cases often involve taxpayer-funded programs, meaning losses can affect Medicare trust funds, veterans’ benefits, military health programs and public health spending. Federal officials said the coordinated enforcement effort was designed to target fraud from individual providers to larger corporate operations.
The Department of Justice said the operation is part of a broader federal effort to combat fraud, waste and abuse in federal benefit programs.
The charges and civil allegations remain accusations unless and until proven in court.