Dayton, Ohio – A Dayton resident has been indicted for allegedly defrauding Medicaid out of millions of dollars through a substance abuse treatment center he was barred from operating. The indictment is part of the Department of Justice’s 2025 National Health Care Fraud Takedown, which Attorney General Pamela Bondi described as a “record-setting” operation aimed at stopping those who “prey upon our most vulnerable citizens and steal from hardworking American taxpayers.”
Earlier this week, Acting United States Attorney Kelly A. Norris announced that 59-year-old Terry Hill, Jr., of Dayton, faces criminal charges including health care fraud, false statements related to health care, and conspiracy to commit health care fraud.
Hill is accused of illegally owning and running Recovery Street Central, a substance abuse treatment recovery facility in Dayton. Although he was excluded from participating in government-funded health programs like Medicare and Medicaid in 2021 following a prior conviction for Medicaid fraud, authorities allege Hill continued to operate the business and submit fraudulent claims.
According to the indictment, Recovery Street Central submitted over $4 million in claims to Medicaid for mental health counseling services. Many of those services, the government alleges, were either never provided or were administered in violation of Medicaid rules and regulations, which prohibit excluded individuals like Hill from owning or managing entities billing these programs.
Part of a Larger Nationwide Takedown
Terry Hill’s case is just one of many included in a sweeping health care fraud takedown that spanned across the United States. The coordinated operation resulted in criminal charges against 324 defendants who allegedly submitted more than $14.6 billion in fraudulent health care claims and were involved in the illegal diversion of over 15 million pills of controlled substances.
“These cases reflect a disturbing trend of criminals exploiting the health care system for personal gain,” said Attorney General Bondi. “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.”
The U.S. government reported it has already seized over $245 million in cash, luxury vehicles, and other assets tied to the fraudulent activity uncovered during the investigation.
Federal and State Agencies Collaborated on the Investigation
Hill’s case is being prosecuted by Assistant U.S. Attorney Kenneth F. Affeldt and Special Assistant U.S. Attorney Brian Walter, who also serves as the Principal Assistant Attorney General for the Ohio Medicaid Fraud Control Unit. The investigation was led by the FBI’s Cincinnati Division and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
The broader national effort includes involvement from multiple DOJ strike forces and U.S. Attorneys’ Offices across 35 states. State Attorney General offices from Ohio, New York, Illinois, Pennsylvania, and several others also contributed, with substantial support from the Health Care Fraud Unit’s Data Analytics Team to track fraudulent billing activity.
Hill’s indictment is another example of the federal government’s intensified focus on healthcare fraud. While Hill awaits trial, federal authorities are signaling that investigations like these will continue to be a top priority. The charges against him, if proven, could result in significant prison time, restitution, and forfeiture of assets.
The Department of Justice continues to encourage anyone who suspects health care fraud to report it, ensuring that programs meant to support the elderly and disabled are protected from exploitation.
