Montana Residents Charged in Largest Healthcare Fraud Takedown in DOJ History

The Department of Justice announced Monday what it calls the largest healthcare fraud takedown in its history, charging 324 defendants across the nation in connection with over $14.6 billion in alleged fraud. The operation more than doubles the prior record of $6 billion and involved enforcement efforts across 50 federal districts and 12 State Attorneys General’s offices.

According to the DOJ, the cases involve a wide range of fraud schemes, from illegal kickbacks and billing for unnecessary medical equipment to identity theft and conspiracy.

Three Montana residents were among those charged in the unprecedented nationwide crackdown.

Montana Cases

In Montana, federal prosecutors filed charges against three individuals in two separate cases:

Kimberly Bengtson, 49, of Butte, was charged by indictment with theft of government funds in connection with a federal benefits fraud scheme spanning nearly five years, from July 2020 to June 2025. According to the indictment, Bengtson “affirmatively misled authorities” about her marriage, relationship status, household composition, income, and financial resources to fraudulently obtain SNAP (food stamp) and Medicaid benefits totaling more than $180,000. The indictment alleges she failed to report required changes in her circumstances and was not entitled to the full amount of benefits received. Assistant U.S. Attorney Benjamin Hargrove is prosecuting the case.

Ronda Knox, 59, and Michael Knox, 57, both of Missoula, were charged by indictment with conspiracy and Social Security fraud in connection with a multi-year scheme to defraud the Social Security Administration. According to the indictment, the couple conspired beginning around November 2022 to misrepresent their living arrangements by claiming they did not live together. Ronda Knox allegedly concealed that she resided with her husband from February 2021 to August 2024 to fraudulently receive Supplemental Security Income benefits. Michael Knox allegedly concealed his employment from September 2020 to August 2024 to fraudulently obtain Social Security Disability Insurance benefits. Assistant U.S. Attorney Shannon Clarke is handling their prosecution.

Ronda Knox has prior involvement with fraud-related charges. In March 2013, she was charged with felony attempted theft in Missoula Justice Court after attempting to cash a $7,500 check at EZ Money Check Cashing Services. According to court records, Knox told authorities she was using the money to claim a sweepstakes prize. She faced up to 10 years in prison and a $50,000 fine for that charge.

National Scope

The nationwide operation targeted healthcare fraud schemes that allegedly cheated federal programs including Medicare, Medicaid, and Social Security disability benefits. Among the 324 defendants charged were 96 doctors, nurse practitioners, pharmacists, and other licensed medical professionals.

The government seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets as part of the coordinated enforcement efforts. Additionally, the Centers for Medicare and Medicaid Services successfully prevented over $4 billion from being paid in response to false and fraudulent claims and suspended or revoked the billing privileges of 205 providers.

The coordinated enforcement action represents the culmination of investigations by multiple federal agencies, including the FBI, the Department of Health and Human Services Office of Inspector General, and other law enforcement partners. The cases span numerous judicial districts across the country and involve various types of healthcare fraud.

The DOJ emphasized that healthcare fraud not only costs taxpayers billions of dollars but also puts patients at risk by compromising the integrity of medical care. The department said it will continue to prioritize the investigation and prosecution of healthcare fraud schemes to protect both public health programs and the patients they serve.

All defendants are presumed innocent until proven guilty in court.