EXCLUSIVE: Bombshell 340B Haitian fraud case sparks growing Capitol Hill scrutiny

A massive healthcare fraud case involving a Florida clinic and the federal 340B drug discount program is generating fresh scrutiny on Capitol Hill, where lawmakers are warning that weak oversight and limited transparency may be creating opportunities for abuse.

The controversy follows a bombshell Fox News Digital report by Robert Schmad detailing the case of Jean Jethro Alexandre, a Haitian national who was convicted in a healthcare fraud conspiracy involving more than $58 million in false claims submitted to Medicare, Medicaid and private insurers. According to federal prosecutors, Alexandre and his co-conspirators recruited fraudulent patients, paid kickbacks, obtained fake prescriptions for HIV and AIDS medications, and then profited from insurance reimbursements generated through the 340B Drug Pricing Program.

Sen. Tom Cotton (R., Ark.) weighed in on X, slamming the fraud and posting “This is outrageous. Arkansans’ tax dollars are being used to make Somali and Haitian scammers rich. It’s a reminder that Congress needs to pass my Welfare Fraud Deterrence and Recovery Act immediately.”

The case has quickly become a flashpoint in the ongoing debate surrounding the federal program, which allows qualifying healthcare providers to purchase drugs at steep discounts. It is also an example of the Trump Administration’s successful anti-fraud work, a topic that the Reporter exclusively reported is strongly supported from the American public.

The Reporter has also interviewed multiple Congressmen who have expressed concern about fraud in the 340B program. 

“The outrage is growing and this could finally lead to oversight action,” a Senate Republican source told the Washington Reporter. “Members are angry about the fraud itself, but there is also growing concern about the 340B program that allowed this to happen.”

Several lawmakers told Fox News Digital that the case highlights broader concerns about accountability within the program.

Rep. Diana Harshbarger (R., Tenn.), a pharmacist, said the 340B program was created with good intentions but has evolved into “a massive, poorly supervised program with weak transparency and accountability safeguards.”

“When there is limited federal oversight, little transparency into how 340B revenues are used, and enormous financial spreads between discounted acquisition costs and insurer reimbursements, it should not surprise anyone that fraudsters see the program as a target,” Harshbarger told Fox News.

Rep. Morgan Griffith (R., Va.), who serves on the House Energy and Commerce Health Subcommittee, said the case demonstrates the need for Congress to continue investigating fraud and abuse.

“Alexandre’s blatantly setting up a fraudulent medical clinic and disregarding important safety net programs, as well as finite taxpayer dollars, shows the need for the Committee to continue its important work in cracking down on harmful schemes like this one,” Griffith told Fox News.

Although Griffith said he remains supportive of the 340B program, he added that the fraud case is “yet another example of how the program has strayed far from its initial intent.”

Federal prosecutors said Alexandre used proceeds from the scheme to purchase a luxury-car collection, investment properties, and a $2.5 million South Florida mansion. After serving a prison sentence of nearly 10 years, Alexandre is expected to be transferred to Immigration and Customs Enforcement for removal proceedings.

For lawmakers already questioning the size and scope of the 340B program, aides say the case is likely to intensify calls for reform.

“This story combines healthcare fraud, taxpayer dollars, immigration and government oversight,” the Senate source said. “That’s why it’s getting so much attention on Capitol Hill.”