Tipsheet

The FBI Just Made a Huge Fraud Arrest

The Federal Bureau of Investigation arrested a 60-year-old man from Chicago accused of leading a massive Medicare fraud scheme that bilked federal programs out of over $1.2 billion.

Herbert Leon Kimble had been convicted for the scheme but fled the country before he could be sentenced. He was arrested in the Philippines earlier this month before being returned to the U.S.

Kimble has now become the second person arrested from the FBI’s new “Most Wanted Fraudsters” list. The New York Post reported that he was arrested in the Philippines after almost two years on the run. 

“In just over two weeks, this is the second Most Wanted Fraudster arrested on the FBI’s list led by Vice President Vance and the White House Task Force to Eliminate Fraud,” FBI Director Kash Patel said in a statement. “Herbert Leon Kimble was apprehended in the Philippines and is now back in the United States, on the run since 2024 after he allegedly orchestrated a $1.2 billion healthcare fraud conspiracy that targeted the Medicare system — particularly elderly victims — from 2014-2019.” 

Kimble admitted his role in the scheme in April 2019 when he pleaded guilty in federal court in South Carolina. He was charged with conspiracy to defraud the United States, healthcare fraud, wire fraud, mail fraud, making false claims to the government, and offering kickbacks and bribes.

The defendant operated a large-scale healthcare fraud conspiracy that targeted the Medicare system. The scheme involved a sophisticated network of call centers and medical providers to generate fake demand for braces that seniors often didn’t need. The FBI said he ran the operation between 2014 and 2019.

The fraud scheme involved individuals contacting call centers in the Philippines, telemedicine providers, DME suppliers, and orthopedic brace suppliers. The scammers contacted Medicare beneficiaries and persuaded them to request orthopedic braces to relieve pain. However, the braces were rarely necessary and were prescribed through telemedicine consultations that did not include an actual medical evaluation. The prescriptions were sold to Durable Medical Equipment (DME) companies. Suppliers tied to Kimble would ship the braces and the DME companies billed Medicare for reimbursement. This allowed the fraud to shield the scammers from direct contact with the victims.

Kimble failed to show up for his scheduled sentencing hearing in 2024. A federal arrest warrant was issued shortly after, which prompted him to flee to the Philippines.

The Most Wanted Fraudsters list was created earlier this month as a way to shine a spotlight on major fraud cases and to hasten arrests like Kimble’s.