A Bronx resident pleaded guilty to a multimillion-dollar scheme that used stolen Medicaid identities to obtain prescription drugs, triggering federal charges and forfeiture agreements.
Ciera Washington, 35, of the Bronx admitted to conspiring to commit health care fraud and aggravated identity theft after investigators say she and others used stolen Medicaid beneficiary information to secure prescriptions across the Northeast. The conspiracy allegedly ran from April 2023 through October 2024 and involved multiple co-conspirators who helped move and obtain medications outside legitimate channels. Authorities say the scheme produced nearly $4 million in losses to the New York Medicaid program and hit pharmacies for tens of thousands of dollars in improper claims.
Prosecutors identified Raven White and Bryan Otero as participants in the network that traded in personally identifiable information and diverted prescription medication. Washington pleaded guilty and agreed to forfeit more than $400,000 tied to the scheme, while also consenting to an order of restitution to cover the losses her conspiracy caused. The case underscores how identity theft and health-care fraud can combine to drain public benefits and put controlled substances into illegal distribution streams.
The guilty plea was announced by a coalition of federal and state officials, reflecting a cross-agency push against benefit fraud. That team included the U.S. Attorney’s Office, the FBI’s Albany Field Office, the Department of Health and Human Services Office of Inspector General, and the New York State Comptroller. Officials framed the investigation as part of a broader priority to protect taxpayers and vulnerable program recipients from exploitation.
First Assistant United States Attorney John A. Sarcone III said “Healthcare fraud is theft from both the taxpayers and the vulnerable individuals these programs are designed to serve. This office is committed to pursuing individuals such as Ms. Washington who abuse public benefit programs for personal gain. Working alongside our partners, we will continue to root out fraud and recover stolen funds for the American People.”
Federal agents say the criminal activity involved using beneficiaries’ names and identifying details to present fraudulent prescriptions at pharmacies, then collecting the drugs for resale or personal distribution. Investigators traced a pattern of claims and pickups that spanned multiple pharmacies across New York and neighboring states, creating a paper trail that linked back to Washington and her associates. Authorities emphasize that this type of fraud inflates program costs and undermines legitimate access to care for those who rely on Medicaid.
“Americans suffer when criminals like Ms. Washington and her co-defendants defraud government programs. This investigation proves the FBI will not stand by while deceptive individuals compromise invaluable programs designed to help our citizens who need it most.” Said Craig L. Tremaroli, Special Agent in Charge Albany FBI.
Under the plea, Washington faces significant federal exposure at sentencing, which is scheduled for October 14, 2026. She faces up to 10 years in prison on the fraud count and a mandatory consecutive two-year term on the aggravated identity theft count, along with up to three years of supervised release. The court will also consider restitution and the agreed-upon forfeiture when determining the final punishment.
Investigators say the case was handled jointly by the FBI, HHS-OIG, and the New York State Comptroller’s Office, with an Assistant U.S. Attorney prosecuting on behalf of the government. Officials point to interagency coordination as essential for dismantling schemes that cross state lines and exploit federal benefit systems. The same enforcement posture is being broadened through new federal units aimed at targeting systemic fraud.
“This egregious fraud committed by the defendant is hazardous in several ways. Actions like hers can harm Medicaid beneficiaries by violating their benefits and privacy information, harm the Medicaid program by driving up costs for prescriptions that were not legitimate, and harm the public through the diversion of prescription medication outside of legitimate drug channels,” stated Naomi D. Gruchacz, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We appreciate our strong collaborative partnership with both the Federal Bureau of Investigation and the New York State Comptroller’s Office to root out this type of fraud within HHS programs.”
The Department of Justice recently formalized a new National Fraud Enforcement Division to concentrate resources on fraud cases that target the public and federal programs. That Fraud Division supports the Trump Administration’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance, which aims to cut waste and expose abuse in benefit systems. Prosecutors and investigators say the new structures are designed to make it harder for fraud rings to operate with impunity.
This prosecution reinforces a message that stealing from taxpayers and exploiting vulnerable beneficiaries will draw federal scrutiny and stiff penalties. By tying forfeiture and restitution to criminal pleas, officials seek not only to punish offenders but also to recover funds for injured programs. The case will move to sentencing later this year, where federal penalties and the agreed financial remedies will be finalized.
