Four charged in alleged $12 million Bronx Medicaid fraud scheme, DOJ says

Federal prosecutors unsealed a nine-count indictment charging four members of a Bronx-based racketeering organization known as the “War Room” with participating in a scheme that allegedly generated fake transportation data used to support millions of dollars in fraudulent Medicaid claims, according to the Justice Department.

Louis Trejo, known as “Machete”; Kenneth Garner, known as “KG”; Harold Stevenson, known as “Bazz”; and Erihk Belis, known as “Eddie,” face various charges involving racketeering, violence in aid of racketeering, firearms, fraud, narcotics distribution and money laundering, prosecutors said. Trejo, Garner and Belis were arrested and, at the time of the announcement, were expected to be arraigned before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court. Stevenson remained at large, according to the Justice Department. The case was assigned to U.S. District Judge John G. Koeltl.

Prosecutors allege the defendants, led by Trejo and Garner, operated out of an office in Trejo’s residence that they called the “War Room.” The group allegedly fabricated ride data to support Medicaid reimbursement claims for transportation to methadone clinics that was never provided. Its members recruited Medicaid-eligible patients from clinics in the Bronx and Manhattan, logged fake rides through a ride-tracking application and used a GPS “spoofing” application to falsify pickup and drop-off locations, according to the indictment. In exchange for the use of their enrollment information, patients allegedly received weekly kickbacks in cash and drugs, including fentanyl and heroin.

The defendants allegedly operated under the guise of a charity called the “Forward Foundation” to obscure their criminal activity. An organizational chart found in Trejo’s residence listed Trejo as “CEO,” Garner as “COO,” Stevenson as an outreach member manager and Belis as vice president, prosecutors said.

The scheme allegedly generated data for hundreds of fake rides each week, which was provided to collusive New York-area transportation companies that used it to support claims submitted to Medicaid. Three transportation companies that made direct payments to the War Room collectively submitted more than $12 million in “unmatched” Medicaid claims from approximately 2023 through 2025, meaning no medical provider submitted corresponding claims reflecting medical services provided, according to the Justice Department. The defendants allegedly received payments from the transportation companies and laundered the proceeds to conceal their source and nature.

To protect the War Room’s profits and expand its reach, Trejo and Garner allegedly directed other members to carry out an armed home-invasion robbery on Jan. 12, 2024, targeting the leader of a rival Medicaid fraud ring in Teaneck, New Jersey. They allegedly believed the rival kept millions of dollars in cash and drugs at his home.

Masked and armed robbers allegedly zip-tied the occupants, pistol-whipped one person, intentionally cut the rival ring leader’s hands and held the victims at gunpoint for several hours. The robbers did not find the anticipated cache of money or drugs but fled with approximately $25,000 in cash and other assorted items, according to the indictment.

Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Jamie McDonald for the Southern District of New York described the case as illustrating an alleged connection between benefits fraud and violent criminal activity.

The case is being handled by the U.S. Attorney’s Office for the Southern District of New York’s Narcotics Unit. Assistant U.S. Attorneys William C. Kinder, Mostafa Khairy and Patrick J. Gallagher are prosecuting the case.