Four Charged in $12M Medicaid Fraud and Racketeering Scheme
Federal prosecutors announced charges against four individuals accused of running a racketeering conspiracy tied to fraudulent Medicaid claims and violence; the case remains pending.
2 reports on this incident · first at Aug 20, 2026, 6:15 p.m. ET
Earlier reports
Aug 20, 2026, 6:15 p.m. ETFirst report
Four Charged in $12M Medicaid Fraud and Racketeering Scheme
On August 20, 2026, federal prosecutors announced charges against four individuals in connection with an alleged racketeering conspiracy that defrauded Medicaid of at least $12 million, according to the U.S. Department of Justice.
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,” are charged with racketeering, violence in aid of racketeering, firearms offenses, fraud, narcotics, and money laundering, the Justice Department reported. The charges were filed in the Southern District of New York.
The defendants allegedly operated a scheme involving the fabrication of transportation data used to support fraudulent Medicaid claims, paid kickbacks to Medicaid patients, laundered proceeds, and engaged in violence, including an armed home invasion robbery, according to the Justice Department.
The investigation was conducted by Homeland Security Investigations, the U.S. Department of Health and Human Services Office of Inspector General, and the U.S. Postal Inspection Service, the Justice Department said.
The defendants face a maximum sentence of life in prison if convicted. These charges are only allegations, and the case is at the charging stage, meaning it has not been decided by a court. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Revision history
- Version 120 Aug 2026, 22:22current
First published.
- Version 120 Aug 2026, 22:15current
First published.
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