Oregon — State Rep. Ed Diehl (R–Stayton) is calling for immediate state and federal investigations into what he describes as “deeply troubling” Medicaid fraud and oversight failures tied to Oregon’s health care system.
In a letter sent Tuesday to the Oregon Department of Justice’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services’ Office of Inspector General, Diehl highlighted concerns over Uplifting Journey LLC, a behavioral health provider that received more than $2.3 million in Medicaid reimbursements in less than a year despite ties to violent crime and alleged gang activityLetter to Request Investigation….
The company, founded in 2023 by an individual using the name “Julius Maximo,” operated a halfway house in Lake Oswego later linked to alleged members of the Tren de Aragua gang. One alleged member is now facing charges in Washington State for kidnapping, torture, robbery, and attempted murder.
“Despite multiple red flags — including repeated police calls to the property, violent criminal charges, and reports of fraud — the Oregon Health Authority appears to have taken no effective action,” Diehl wrote. “No clear effort has been made to recover the $2.3 million in taxpayer funds.”
According to the letter, Uplifting Journey abandoned its properties shortly after the violent incidents, leaving only trash bags and mattresses behind. At the same time, a second company linked to the same individual, Restorative Journey (Life Restoration Missions LLC) — was approved for Medicaid reimbursement. Diehl noted that it received its first Medicaid payment the day after the attempted murder tied to Uplifting Journey.
Diehl also raised concerns that Oregon’s Medicaid enrollment system checks only basic information such as tax ID and licensing, without thorough credentialing. He said OHA’s actions suggest systemic failures.
“This situation illustrates more than one bad actor exploiting a loophole,” Diehl said. “It raises urgent, systemic questions” about how many similar entities may be exploiting weaknesses in Oregon’s provider enrollment and reimbursement systems.
The letter urges investigators to:
- Open a joint investigation into Uplifting Journey, Restorative Journey, and related entities.
- Audit OHA’s provider enrollment and reimbursement processes.
- Identify systemic vulnerabilities and pursue recovery of funds.
- Refer cases for prosecution if criminal misconduct is confirmed.
Diehl concluded that Oregon’s most vulnerable residents, those dependent on Medicaid, deserve “better stewardship of their tax dollars and stronger protection from fraud.”
The Oregon Health Authority has not yet issued a public response to Diehl’s letter.
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