Attorney General Ken Paxton's Medicaid Fraud Control Unit Plays Key Role in Largest Dismantling of Health Care Fraud in U.S. History. U.S.

Texas Attorney General Press Release, July 18, 2025

Texas Attorney General Ken Paxton announced that his Medicaid Fraud Control Unit (MFCU) played a major role in the largest health care fraud enforcement action in U.S. history, resulting in criminal charges against 30 defendants related to more than a dozen fraudulent health care schemes in Texas. The schemes collectively accounted for more than $177 million in fraudulent bills, $1.7 million in bribes, and illegal diversion of more than 10 million opioid pills.

"In Texas, we fight fraud head-on and will not rest until every last corrupt actor is brought to justice," said Attorney General Paxton. "Together with President Trump and dedicated individuals at the Department of Justice, we are dismantling criminal enterprises that steal from taxpayers and endanger lives. Medicaid scammers exploit our health care systems for personal gain and drain the resources of the citizens who need them most."

As part of a broader national crackdown, law enforcement agencies focused on criminals exploiting taxpayer-funded health care programs for personal gain, leading to communities being flooded with dangerous prescription opioids. The charges brought through MFCU's investigations included conspiracy to commit health care fraud, illegal distribution of controlled substances, and violations of federal anti-bribery statutes. More than 30 Task Force officers and U.S. Special Assistant Attorneys General from Attorney General Paxton's Medicaid Fraud Control Unit worked closely with federal law enforcement and the U.S. Department of Justice to identify and dismantle these criminal enterprises.

Since 2020, the MFCU has recovered more than $1 billion in settlements, judgments, and restitution for Texas taxpayers. The MFCU receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant totaling $22,792,664 for fiscal year 2024. The remaining 25 percent, totaling $7,597,553, is funded by the State of Texas. Over the past 5 years, the Texas Attorney General's MFCU has achieved an extraordinary return on investment of 2,889 percent for Texas taxpayers.

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