Largest ever nationwide healthcare fraud takedown includes two cases from Western Washington

Seattle –Today, Acting United States Attorney Teal Luthy Miller announced criminal charges against a resident at Seattle Children’s Hospital, UW Medical Center, and Harborview, and a civil settlement with a medical practice as part of the Department of Justice’s 2025 National Health Care Fraud Takedown. The criminal charge stems from the criminal complaint filed against an anesthesiology resident who diverted narcotic pain medication for his own use. The civil settlement is with a company that billed federal medical programs for medications that were considered experimental and not approved for the diagnoses.

“Our work in health care fraud is both to protect patients and protect important government programs,” said Acting U.S. Attorney Miller. “The medical resident stole narcotics and used them while at work in the UW hospital system, putting patients in jeopardy.  Pinnacle Health PC, a Seattle based healthcare provider, billed more than $500,000 for treatments that were experimental and had not been approved, potentially harming patients and making false claims on federal funds.”

“This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.”

The cases announced today by Acting U.S. Attorney Miller are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in alleged false billings and over 15 million pills of illegally diverted controlled substances. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the Takedown, seized over $245 million in cash, luxury vehicles, and other assets.

The following individual was charged in the Western District of Washington:

Andrew Voegel-Podadera, 35, of Seattle, Washington, was charged by complaint with obtaining controlled substances by fraud in connection with a scheme to divert medications for his own use. As alleged in the complaint, Voegel-Podadera was an anesthesiology resident who secretly took fentanyl, hydromorphone, and other medications over the course of at least a year while working at Seattle Children’s Hospital, Harborview Medical Center, and University of Washington Medical Center. He sometimes used the diverted substances while still at the hospital, meaning he was under the influence of potent narcotics while treating patients.

“Diverting medicine away from infant patients is despicable, doubly so if the person involved is a doctor,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “If Dr. Voegel-Podadera is convicted, it will show that he violated both his oath and the law, and I am proud that DEA could help stop him.”

“FDA will continue to aggressively pursue those health care practitioners who prey on vulnerable patients by removing their needed medications, as was the criminal case against the anesthesiology resident at Seattle Children’s Hospital,” said Special Agent in Charge Robert Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office.  “We remain committed to working with our law enforcement partners to protect the public health and bring to justice those would compromise patients’ health and comfort in this manner.”   

The healthcare provider Pinnacle Health PC resolved civil claims that it submitted false claims to government programs:

The U.S. Attorney’s Office for the Western District of Washington began an independent investigation of Pinnacle Health PC, a Seattle based healthcare provider that specializes in regenerative treatments, acupuncture, and lifestyle and nutrition coaching. The investigation was a consequence of a referral from HHS-OIG, in which concerns were raised that Pinnacle was billing for procedures for unapproved diagnoses.  Based on our analysis of Medicare claims data and in coordination with HHS-OIG, we substantiated concerns that Pinnacle violated the False Claims Act, when it billed for an injectable form of an amniotic fluid product called FlowerAmnioFlo. CMS had approved a sheet form of FlowerAmnioFlo for very limited purposes, but Pinnacle used and billed for the injectable product that was considered experimental and not approved for any diagnosis. Our investigation uncovered similar claims were billed to Tricare as well.  We resolved the matter for $1,115,976.

“The scale of today’s Takedown is unprecedented, and so is the harm we’re confronting. Individuals who attempt to steal from the federal health care system and put vulnerable patients at risk will be held accountable,” said HHS-OIG Acting Inspector General Juliet T. Hodgkins. “Our agents at HHS-OIG work relentlessly to detect, investigate, and dismantle these fraud schemes. We are proud to stand with our law enforcement partners in protecting taxpayer dollars and safeguarding patient care.”

The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Columbia, District of Connecticut, District of Delaware, Middle, District of Florida, Northern District of Florida, Southern District of Florida, Middle, District of Georgia, District of Idaho, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Maine, District of Massachusetts, Eastern District of Michigan, Northern District of Mississippi, Southern District of Mississippi, District of Montana, District of Nevada, District of New Hampshire, District of New Jersey, Eastern District of New York, Northern District of New York, Southern District of New York, Western District of New York, Eastern District of North Carolina, Western District of North Carolina, District of North Dakota, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, District of South Carolina, 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 Washington, and Northern District of West Virginia; and State Attorney Generals’ Offices for Arizona, California, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Missouri, New York, Ohio, and Pennsylvania are prosecuting the cases in the National Health Care Fraud Takedown, with assistance from the Health Care Fraud Unit’s Data Analytics Team. 

Descriptions of each case involved in today’s enforcement action are available here: https://www.justice.gov/criminal/criminal-fraud/2025-national-health-care-fraud-takedown

The Western District of Washington, worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the case filed during the enforcement period: the Drug Enforcement Administration (DEA) and Food and Drug Administration - Office of Criminal Investigations (FDA-OCI). The civil false claims matter was investigated by the U.S. Attorney’s Office False Claims Act Investigator Ryan Hardy and Health and Human Services Office of Inspector General (HHS-OIG).

A criminal complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The criminal case is being prosecuted by Assistant United States Attorneys Philip Kopczynski and Amanda McDowell.

The civil settlement was negotiated by Assistant United States Attorney Nickolas Bohl.