Rep. Diehl: Investigate possible $2.3M Medicaid fraud

Representative Ed Diehl Demands Investigation into Possible $2.3 Million Medicaid Fraud Case
By Oregon State Representative Ed Deihl,

SALEM, OR — In a letter sent today, Representative Ed Diehl (R-Stayton) has called on the Oregon Department of Justice’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services Office of Inspector General to investigate serious allegations of Medicaid fraud and oversight failures at the Oregon Health Authority (OHA).

Investigative reporting revealed that Uplifting Journey LLC, founded in late 2023 by an individual using the name “Julius Maximo,” received more than $2.3 million in Medicaid reimbursements in less than a year. The company operated a Lake Oswego halfway house later tied to alleged members of the Tren de Aragua gang, one of whom is facing charges in Washington State for kidnapping, torture, robbery, and attempted murder.

Despite these red flags, OHA approved daily reimbursement claims until March 2025. The company then abandoned its office and halfway house. Soon afterward, “Maximo” registered a second company — Restorative Journey — which OHA also approved for Medicaid billing.

“There is likely more than one fraudulent provider — I believe this exposes systemic failures in how Oregon vets and monitors Medicaid programs,” said Rep. Diehl. “Over $2 million in taxpayer money was funneled to what appears to be a sham company with ties to violent crime. Oregonians deserve accountability and reform.”

Rep. Diehl’s letter urges state and federal investigators to:

• Investigate Uplifting Journey, Restorative Journey, and related entities.
• Audit OHA’s provider enrollment and reimbursement processes.
• Recover taxpayer funds and pursue enforcement actions where appropriate.
• Recommend reforms to close systemic loopholes.

“Every dollar stolen by fraud is a dollar taken from vulnerable Oregonians who truly need care,” added Rep. Diehl. “OHA must have systems in place to prevent fraud.”

Copies of the letter were also sent to OHA Director Dr. Sejal Hathi and legislative committee chairs.