South Carolina Attorney General Alan Wilson has announced a collaborative effort named Operation Border War, which uncovered Medicaid fraud schemes amounting to over $21 million. The announcement was made in Charlotte, alongside U.S. Attorney for the Western District of North Carolina Russ Ferguson, North Carolina Attorney General Jeff Jackson, FBI Special Agent James C. Barnacle, Jr., and representatives from IRS-Criminal Investigation and the Department of Health and Human Services Office of the Inspector General.
The investigation led to criminal charges against nine individuals accused of defrauding Medicaid programs in South Carolina and North Carolina. This action is part of a broader Justice Department initiative that resulted in 324 defendants being charged with more than $14.6 billion in alleged fraud.
“Medicaid fraud is theft, plain and simple,” stated South Carolina Attorney General Wilson. “It robs taxpayers and puts vulnerable people, including children, at risk by draining critical resources from our healthcare system.”
The federal charges were filed against eight individuals who allegedly conspired to defraud the South Carolina Medicaid Program by submitting false claims for behavioral health services. These claims involved personal identifying information (PII) bought and sold without beneficiaries’ knowledge or consent.
David Corey Hill from Concord, North Carolina faces separate charges related to conspiracy to commit health care fraud and money laundering. He has agreed to plead guilty.
From 2017 to 2024, it is alleged that defendants submitted fraudulent reimbursement claims through a network of companies in Charlotte and other areas using illegal kickbacks and bribes. Saunders is identified as an organizer who facilitated these operations with others such as Hitchcock, Strickland, Hill, Jenkins, McClary, and Corbett.
In addition to using stolen PII from SC Medicaid beneficiaries during their investigation, authorities created fictitious beneficiaries whose details were then used for fraudulent claims.
The indictment further alleges money laundering activities disguised as legitimate financial transactions like consulting contracts or payrolls.
If convicted on all counts—healthcare fraud conspiracy carries up to five years imprisonment; healthcare fraud counts ten years; money laundering conspiracy twenty years; money laundering counts ten years—the sentences will be determined by court guidelines.
An indictment or information remains an allegation until proven otherwise beyond reasonable doubt in court proceedings.
Suspected Medicare or Medicaid fraud can be reported via phone at 1-800-HHS-TIPS (1-800-447-8477) or email [email protected]. For suspected Medicaid fraud specifically within South Carolina contact SCDHHS at 1-888-364-3224. TRICARE-related issues may be reported online while VA healthcare system concerns should go through www.vaoig.gov/hotline.
