Hundreds of Target workers in Chicago fired over alleged health care loan fraud — how a 'glitch in the system' led to more than $1M stolen

Charles Thrush, who first reported the story, says one person “found a glitch in the system” and encouraged others to cash in, turning the scheme into a personal payday.

“He would charge $200 to $300, basically, for all these people to get their loans,” Thrush told WGN News in a story published Aug. 19.

How widespread was it?

Thrush estimates that between 400 and 700 workers were fired over a two-week period from the end of July into August.

Target has not confirmed the exact number of terminations but said in a statement to both news outlets: “Following an internal investigation, we have terminated team members found to be in violation of our company’s code of ethics.”

For the Target employees involved, it’s unclear whether criminal charges will follow. Block Club Chicago reports the scheme may have cost the company over $1 million.

In Illinois, health care fraud is typically prosecuted as a Class 4 felony — carrying penalties of up to three years in prison and fines of as much as $25,000 for individuals, according to law firm Dolci & Weiland.

Health care fraud isn’t limited to corporate benefits programs. The FBI estimates it costs the U.S. tens of billions of dollars each year, with schemes ranging from double billing — submitting multiple claims for the same service — to phantom billing for services never provided, or “upcoding,” where providers bill for more expensive procedures than those actually performed. These practices can drive up costs for businesses, insurers and consumers.