Youngsville man indicted in alleged $14 million healthcare fraud scheme
RALEIGH, NC (WWAY) — A Youngsville man has been indicted on federal charges alleging his involvement in a multimillion-dollar healthcare fraud conspiracy that targeted Medicare, veterans’ healthcare programs, and other insurers.
Federal prosecutors announced Tuesday that James Thomas Foley, 45, an Irish citizen living in Youngsville, was charged as part of the U.S. Department of Justice’s 2026 National Health Care Fraud Takedown.
According to the U.S. Attorney’s Office for the Eastern District of North Carolina, Foley is accused of participating in a scheme that billed Medicare and other health insurance programs for medically unnecessary durable medical equipment, including braces and pneumatic compression devices.
Prosecutors allege Foley and others worked with marketing companies that contacted Medicare beneficiaries and encouraged them to accept medical equipment regardless of whether it was medically necessary. Authorities say the companies allegedly waived copays and deductibles and then sold patient information and prefilled orders to durable medical equipment suppliers.
Investigators claim Foley and affiliated companies used a “doctor chase” model, pressuring physicians to sign or modify orders so insurance claims could be submitted and paid.
According to the indictment, companies owned by or associated with Foley received more than $14 million in Medicare reimbursements alone.
“This indictment demonstrates our commitment to exposing and stopping schemes that bill Medicare for products beneficiaries don’t actually need,” U.S. Attorney Ellis Boyle said in a statement. “When fraudsters treat Medicare like a personal ATM, the American taxpayers foot the bill.”
Federal officials said the alleged fraud affected multiple healthcare programs, including Medicare, TRICARE, the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA), and other insurance providers.
Another defendant connected to the investigation, Randal Fenton Wood, pleaded guilty last year in the Eastern District of North Carolina, according to court records.
The investigation was led by the U.S. Department of Health and Human Services Office of Inspector General, with assistance from the Department of Veterans Affairs Office of Inspector General and the Defense Criminal Investigative Service.
An indictment is an allegation, and Foley is presumed innocent unless and until proven guilty in court.
