National Health Care Fraud Takedown Results in 455 Defendants Charged in Connection with Over $6.5 Billion in Alleged Fraud, Including Oahu Man Charged with Fraudulent Billing Resulting in $1.5 Million Loss

News Release from U.S. Attorney's Office, District of Hawaii Tuesday, June 23, 2026

HONOLULU – Today, United States Attorney Ken Sorenson announced criminal charges against Henry Quan in connection with an alleged scheme to defraud Medicare.  The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.  The charges stem from a scheme to bill for prescription drugs that were never dispensed.

“Health care fraud – driven by greed and a total disregard for the patients whom health care providers are meant to serve – is a blight on our community that the U.S. Attorney’s Office and its law enforcement partners are committed to eradicating,” said U.S. Attorney Ken Sorenson.  “We will bring to justice those who seek to steal from our taxpayers, undermine our federal health care programs, and endanger the lives of patients in the process.”

“Protecting federal healthcare programs from fraud and abuse is a top priority for the FBI,” said FBI Honolulu Special Agent in Charge David Porter.  “As alleged, the defendant compromised the integrity of our healthcare system and put profits over patient care by charging Medicare for prescription drugs that were never provided.  The FBI, alongside our law enforcement partners, will continue to aggressively pursue and hold accountable anyone who attempts to enrich themselves at the expense of American taxpayers and vulnerable patients.”

“These charges reflect the serious threat that health care fraud poses to patients and to the integrity of federal healthcare programs,” said Special Agent in Charge Robb Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Pacific Regional Office.  “I want to commend the investigators and prosecutors whose diligent work brought these allegations to light. HHS-OIG remains committed to pursuing those who exploit and defraud the Medicare program.”

The charges announced today by U.S. Attorney Ken Sorenson are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death.  Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history.  In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme.  The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.

Today’s coordinated enforcement action involves a whole-of-government approach, including:

• Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
• 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
• Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
• 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.

In the District of Hawaii, Henry Quan, 54, of Honolulu, Hawaii, was charged by criminal complaint with healthcare fraud in connection with a scheme to bill Medicare for prescription drugs that were never dispensed, resulting in a loss of at least $1.5 million.  As alleged in the criminal complaint, Quan, a registered pharmacist, controlled Wellness Pharmacy, which billed for drugs that were not dispensed.  This included fraudulently billing for several high-cost medications, such as Restasis, for which the pharmacy did not have sufficient supplies on hand to cover the medications it claimed to have dispensed to patients.  

The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.

Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.

The District of Hawaii, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the FBI and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).

Assistant U.S. Attorney Michael Albanese is prosecuting the case against Quan.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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HNN: Phyllis Rooney, 67, of Kapolei was charged in connection with a case in Nebraska.

RELATED:

February 28, 2025: Owner of Oahu Physical Therapy Clinic Sentenced to 9 Months in Federal Prison for Health Care Fraud

September 27, 2024: Owner of Oahu Physical Therapy Clinics Pleads Guilty to Health Care Fraud

July 22, 2019: Maui Doctor Pleads Guilty To Health Care Fraud