OFFICE OF INSPECTOR GENERALPress Releases
No Amount Too Small, No Fraud Too Large — And Counting: DOL OIG Cracks Down on Nearly $6 Million in Medicare and UI Fraud Schemes — The Fight Continues
May 28, 2026
FOR IMMEDIATE RELEASE
U.S. Department of Labor, Office of Inspector General
WASHINGTON, D.C. — The U.S. Department of Labor, Office of Inspector General under the leadership of Inspector General Anthony P. D’Esposito, has joined forces with Vice President J.D. Vance’s Task Force to Eliminate Fraud with a clear mission: to fundamentally change how this nation confronts fraud and delivers accountability. For too long, fraud has been allowed to quietly devastate the federal programs that millions of Americans depend on. The American people will no longer be victimized by those who game the system. Inspector General D’Esposito, in partnership with the Task Force, will deploy every resource available to restore integrity and deliver justice.
GREENBELT, MD. — A Maryland man, Terry Chen, was sentenced to six years in federal prison, followed by three years of supervised release for conspiracy to commit wire fraud and aggravated identity theft, in connection with submitting fraudulent CARES Act, unemployment insurance (UI) claims. Chen and his co-conspirators fraudulently obtained more than $3.5 million in UI benefits. Chen was also ordered to pay $1 million in restitution and a criminal forfeiture of $1 million was imposed. This was a joint investigation with the FBI. “If you abuse the UI benefits program meant to aid struggling American families, we will find you and put you in handcuffs. It’s that simple. Backed by the full force of Vice President Vance’s Task Force to Eliminate Fraud, my office will leave no stone unturned in the hunt to hold every fraudster accountable. Time is up and there is nowhere to hide,” said Anthony P. D’Esposito, Inspector General U.S. Department of Labor.
WASHINGTON, D.C. — Three Florida men (Marco Scamarone, Jose Mendez, and Renee Vazquez) were collectively sentenced to 208 months in prison for their participation in a scheme to defraud Medicare and launder more than $2.2 million in illicit health care fraud proceeds. Scamarone and Mendez were also ordered to pay approximately $2.2 million in forfeiture and $3 million in restitution. Vazquez was ordered to pay $1.7 million in forfeiture and $2.2 million in restitution. This was a joint investigation with the U.S. Department of Health and Human Services, Office of Inspector General and the FBI. “This disgraceful crime received exactly the federal prison sentence it deserved. Defrauding Medicare is not a victimless crime — it drains essential resources from the Americans who need them most. Thanks to our partners at the U.S. Department of Health and Human Services, Office of Inspector General and the FBI, we were able to deliver real consequences and bring justice back to the American people,” said Inspector General D’Esposito.
BOSTON, MA. — A Worcester man, Ismael Rosado Jr., was sentenced to three years’ probation for fraudulently obtaining tens of thousands of dollars in Pandemic Unemployment Assistance while employed full-time as a Transportation Security Administration Officer. He obtained over $47,526 in UI benefits and was ordered to pay that in restitution. This was a joint investigation with the U.S. Department of Homeland Security, Office of Inspector General. “Ismael Rosado Jr. exploited his position of trust as a government employee and betrayed the American people to line his own pockets. If you think your schemes will get a pass, count your days. My office has zero tolerance for fraudsters who steal from the American people. We are watching, we are working, and we are coming,” said Inspector General D’Esposito.
No amount too small, no fraud too large — and counting.
For additional information on DOL OIG, please visit oig.dol.gov. If you suspect wrongdoing involving DOL programs or operations, contact the DOL-OIG Hotline at (800) 347-3756 or oig.dol.gov/hotlinecontact.htm.
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