WICHITA, KAN. – The U.S. Attorney’s Office for the District of Kansas (USAO-KS) announced thousands of fraud victims are receiving compensation after the USAO-KS Asset Forfeiture Division obtained an order against a Kansas-based health care company forfeiting millions of dollars in assets.
This action resolves a civil forfeiture case (Case No. 21-1092) filed in the U.S. District Court for the District of Kansas against Medova Healthcare Financial Group and its principals. USAO-KS recovered approximately $23 million for 7,000 victims. The victims are people who paid their premiums. Medova not only failed to pay the health care claims but also diverted money from the premiums it received elsewhere, including for the principals’ own personal use. Because of Medova’s failure to pay the claims, customers received demands for payments from health care providers, causing financial strain on victims who did not have the funds. Some customers had accounts that went into collections.
Medova marketed itself as a third-party administrator and offered a level-funded group health plan for companies and their employees. The Department of Labor filed a civil action against Medova, its subsidiaries, and its principals. The Court appointed an independent fiduciary to take over the administration of the health care claims. The independent fiduciary’s final report indicated that there were unpaid claims and expenses totaling $32 million. Payments derived from the forfeited assets were distributed on October 23, 2026.
The Department of Labor-Employee Benefits Security Administration investigated the case.
This case was litigated on behalf of the United States by Assistant U.S. Attorney Annette Gurney from the District of Kansas.
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Source: U.S. Attorney’s Office — Kansas — U.S. Department of Justice press release.