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Chicago's U.S. Attorney's Office Launches New Section to Intensify Crackdown on Healthcare Fraud

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Published on August 22, 2025
Chicago's U.S. Attorney's Office Launches New Section to Intensify Crackdown on Healthcare FraudSource: Illinois Courts

The U.S. Attorney's Office in Chicago is bolstering its efforts to combat healthcare fraud. A new section within its Criminal Division has been established, focusing solely on the prosecution of such offenses. This announcement was made by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, who emphasized the importance of addressing healthcare fraud, recognized by the Department of Justice as a top fraud enforcement priority. The Healthcare Fraud Section will include six prosecutors and will operate alongside the existing Healthcare Fraud Strike Force, as per a statement released by the U.S. Attorney’s Office.

Leading the new team, Heidi Manschreck has been appointed as the Section Chief and Prashant Kolluri as Deputy Chief. Both come with extensive backgrounds in investigating and prosecuting healthcare fraud cases. The initiative emerged in response to a precipitous rise in fraud schemes that have included everything from false claims by criminal organizations to providers engaging in upcoding and illegal kickbacks. This dedicated section is poised to improve not only focus but also to efficiently bring to bear a more potent impact on fraud investigations and prosecutions across the healthcare industry.

“Every year, healthcare fraud causes billions of dollars in losses to the federal government and private insurers and siphons off hard-earned tax dollars meant to provide care for people in need,” Boutros stated, adding that his office has charged nearly $2 billion in healthcare fraud schemes. He alluded to criminal activity that often entails patients becoming unwitting pawns through unnecessary or unsafe medical approaches. These comments underline the federal commitment to cracking down on such exploitative practices.

The concerted effort to tackle healthcare fraud involves extensive cooperation amongst various governmental bodies. The FBI, DEA, U.S. Department of Health and Human Services Office of Inspector General, and numerous other federal, state, and local agencies are playing a role in this comprehensive strategy. Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services' Office of Inspector General underscored the repercussions of healthcare fraud, stating that these “complex schemes not only drain critical resources intended to provide care and protect some our most vulnerable citizens but can also lead to patient harm.” This sentiment was echoed by Special Agent in Charge Shane Catone of the DEA Chicago Field Division, who expressed support for the new section and the enhanced capabilities it offers in prosecuting those exploiting the system.

The collaboration also involves the Health Care Fraud Unit of the Justice Department's Criminal Division, which has been instrumental in executing significant operations against healthcare fraud. Acting Assistant Attorney General Matthew Galeotti touted their history of holding individuals accountable while also noting a new emphasis on corporate enforcement within the healthcare space, to ensure all responsible parties face justice. The collective efforts of the various departments and units underscore a strong message sent to potential offenders: healthcare fraud is under a heightened scrutiny and misdeeds will be met with rigorous legal action.