Federal indictment charges Bronx 'War Room' with $12 million Medicaid fraud

Crime

Townhall

Federal prosecutors unsealed a nine-count indictment charging four members of a Bronx-based racketeering group called the "War Room" with racketeering, violence in aid of racketeering, firearms offenses, healthcare fraud, narcotics distribution, and money laundering for a scheme that generated over $12 million in fraudulent Medicaid transportation claims. Investigators say the group logged fake rides for methadone clinic patients using a ride-tracking app and GPS spoofing, paid weekly kickbacks in cash and drugs including fentanyl and heroin, laundered proceeds, and committed an armed home invasion against a rival. Three defendants were arrested and arraigned; one defendant remains at large as prosecution proceeds.

Alleged fraud stole over $12 million from Medicaid.