DOJ Charges 'War Room' Members in $12M Medicaid Fraud Scheme Involving Fake Transportation Data and Violence
Last updated 2026-08-24 · Source: justice.gov
Primary source: justice.gov: DOJ Charges 'War Room' Members in $12M Medicaid Fraud Scheme Involving Fake Transportation Data and Violence
The Department of Justice has unsealed an indictment charging four individuals, members of a Bronx-based racketeering organization known as the 'War Room,' with racketeering, fraud, narcotics, and money laundering offenses. The charges stem from an alleged scheme to defraud Medicaid of over $12 million by fabricating transportation data for patients attending methadone clinics, alongside paying kickbacks and engaging in violent acts to protect the criminal enterprise. This case highlights aggressive federal enforcement against organized healthcare fraud and the exploitation of vulnerable patients.
What this means for your practice
This enforcement action by the Department of Justice sends a clear signal to all healthcare operators, including telehealth brands, medspas, dental practices, and chiropractic offices, about the severe consequences of healthcare fraud, particularly schemes involving federal programs like Medicaid. While the specifics of this case revolve around patient transportation services, the underlying principles of illegal kickbacks, fraudulent billing, and exploitation of vulnerable patients are broadly applicable. Practices must maintain impeccable billing records, ensure the legitimacy of all claims submitted to federal payers, and rigorously avoid any arrangements that could be construed as kickbacks, whether in cash, drugs, or other forms. The involvement of violence and racketeering underscores the DOJ's willingness to pursue complex, multi-faceted criminal operations that defraud the healthcare system. Any healthcare business participating in federal programs must prioritize robust compliance programs to mitigate risk and safeguard against fraudulent activities.
WASHINGTON D.C. — The Department of Justice (DOJ) today announced the unsealing of a nine-count Indictment against four individuals, identified as members of a Bronx-based racketeering organization called the “War Room.” Louis Trejo, also known as “Machete;” Kenneth Garner, also known as “KG;” Harold Stevenson, also known as “Bazz;” and Erihk Belis, also known as “Eddie,” face serious charges including racketeering, violence in aid of racketeering, firearms offenses, fraud, narcotics, and money laundering. These charges are in connection with their alleged roles in a vast racketeering conspiracy that fabricated transportation data to support over $12 million in fraudulent Medicaid claims.
The alleged scheme focused on generating false records for Medicaid patient transportation to and from methadone clinics located in the Bronx. According to the indictment, members of the “War Room” not only submitted fraudulent claims based on these fake rides but also paid recurring kickbacks to Medicaid patients in the form of cash and drugs. The millions of dollars in proceeds obtained from this fraudulent enterprise were then allegedly laundered through various means.
Exploitation and Violence: The 'War Room's' Alleged Modus Operandi
The indictment details a sophisticated and violent operation. The “War Room” allegedly preyed upon vulnerable Medicaid patients, exploiting their addiction by providing kickbacks that included narcotics. This created a dual layer of criminality: defrauding a vital federal healthcare program and exacerbating the addiction issues of those it purported to serve.
To protect and expand their illicit enterprise, Trejo, Garner, and other members of the
Key Facts
| Detail | Value | |---|---| | Defendants Charged | Louis Trejo (aka 'Machete'), Kenneth Garner (aka 'KG'), Harold Stevenson (aka 'Bazz'), Erihk Belis (aka 'Eddie') | | Organization | The 'War Room,' a Bronx-based racketeering organization | | Total Fraud Amount | Over at least $12 million in fraudulent Medicaid claims | | Core Scheme | Fabricating transportation data for Medicaid patients to and from methadone clinics | | Additional Allegations | Paid kickbacks (cash and drugs) to Medicaid patients, narcotics distribution, money laundering, and violence (including armed home invasion) | | Current Status | Trejo, Garner, and Belis arrested; Stevenson remains at large. Arraignments expected in Manhattan federal court. |
Frequently Asked Questions
What was the primary method of fraud alleged in this case?
The primary method was fabricating transportation data for Medicaid patients, specifically for rides to and from methadone clinics, to generate fraudulent claims.
How much money was allegedly defrauded from Medicaid?
The defendants are accused of defrauding the Medicaid program of over at least $12 million.
Beyond fraudulent claims, what other illegal activities were involved?
The 'War Room' members allegedly paid kickbacks to Medicaid patients in cash and drugs, engaged in narcotics distribution, laundered money, and committed violent acts, including an armed home invasion robbery against rivals.
Who were the victims of this alleged scheme?
The scheme allegedly exploited vulnerable Medicaid patients seeking addiction treatment and defrauded American taxpayers by stealing from a vital federal healthcare program.
What is the 'War Room'?
The 'War Room' is described as a Bronx-based racketeering organization whose members were charged in connection with this wide-ranging fraud and violence conspiracy.
Source: justice.gov — DOJ Identifies Key Healthcare Fraud Enforcement Priorities