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Two South Carolina defendants have been indicted in what the U.S. Department of Justice (DOJ) is calling the largest-ever nationwide health care fraud enforcement action. The charges are part of a sweeping federal crackdown involving 324 defendants across 50 federal districts.
Those indicted are accused of bilking Medicare, Medicaid, the Veterans Administration, and private insurers out of more than $14.6 billion.
According to the DOJ, the 2025 National Health Care Fraud Takedown aims to hold accountable “criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers.”
“The cases in South Carolina, like those nationwide, demonstrate our unwavering commitment to protecting vulnerable citizens, especially our veterans,” said U.S. attorney Bryan Stirling. “Health care fraud steals from the American taxpayer and harms the systems meant to serve those in need.”
The cases include allegations ranging from ghost billing for veterans’ services to using stolen identities to submit fake claims to Medicare and Medicaid. Authorities seized more than $245 million in cash, luxury vehicles and other assets in connection with the takedown.
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THE SOUTH CAROLINA CASES
Tina Marie Armstrong, 67, of Florence, S.C. was indicted on multiple counts of health care fraud and aggravated identity theft. Federal prosecutors claim she submitted false claims through her company, Safe at Home Medical Equipment and Supplies, LLC, for durable medical equipment (DME) that was not delivered, was no longer in use, or was not prescribed by a physician.
According to the superseding indictment (.pdf), Armstrong allegedly submitted nearly $199,000 in false claims, of which over $104,000 was paid out by Medicare and Medicaid. Investigators say she routinely used beneficiary information without authorization to keep billing the government — in some cases years after patients had died or equipment was returned.
She is charged with four counts of health care fraud and two counts of aggravated identity theft. The scheme reportedly spanned several years and involved the use of patient data from across South Carolina to fuel the billing operation.
Assistant U.S. attorney Winston Holliday is prosecuting her case.
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Dee Alice Moton, 51, of Hephzibah, Georgia, is facing a federal indictment for allegedly billing the Veterans Administration (VA) for massage therapy services she never provided at her Aiken-based business, Flowing Hands Massage Clinical Therapy.
The indictment (.pdf) alleges Moton submitted more than $2.3 million in false claims over a two-year period, charging the VA for services that were either never rendered or were not authorized. According to the charging documents, she routinely billed for:
- Incompatible evaluation and management codes on the same day;
- Telehealth sessions when veterans were seen in person;
- Specialized treatments she was not licensed to provide;
- Services for conditions patients did not have, such as wheelchair therapy for veterans who didn’t use wheelchairs.
Moton is charged with one count of health care fraud. Her case is being prosecuted by assistant U.S. attorneys Scott Matthews and Amy Bower.
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A COORDINATED STRIKE
The South Carolina charges are just two examples from a vast, coordinated law enforcement effort led by the DOJ’s Criminal Division, the Department of Health and Human Services Office of Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), the Drug Enforcement Agency (DEA), and U.S. Attorneys’ Offices across the country. The takedown also includes 91 state-level cases across 12 states.
Authorities also highlighted “Operation Gold Rush,” a related enforcement effort that targeted an international transnational criminal organization responsible for laundering $941 million of Medicare money through fake U.S. medical supply companies. That scheme involved straw owners flown in from Estonia and Russia and generated over $10 billion in fraudulent claims.
Both South Carolina cases will proceed through U.S. district court, with both defendants presumed innocent until proven guilty. If convicted, they face potential prison time and restitution orders for the stolen funds.
This historic takedown underscores the DOJ’s intensified focus on health care fraud in South Carolina and nationwide — especially as fraudsters find new ways to exploit veterans, the elderly, and the disabled for profit.
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ABOUT THE AUTHOR …
As a private investigator turned journalist, Jenn Wood brings a unique skill set to FITSNews as its research director. Known for her meticulous sourcing and victim-centered approach, she helps shape the newsroom’s most complex investigative stories while producing the FITSFiles and Cheer Incorporated podcasts. Jenn lives in South Carolina with her family, where her work continues to spotlight truth, accountability, and justice.
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