Good morning. The Justice Department on Tuesday unveiled charges against around 450 defendants for alleged healthcare fraud totaling over $6.5 billion as part of the Trump administration’s stepped-up antifraud efforts.

• Who is being charged: The announcement includes charges against 90 medical professionals and targets a range of alleged healthcare fraud schemes, such as wound care and opioid distribution. It also includes what officials said is a record number of Medicaid fraud defendants, with nearly 300 people accused of submitting over $500 million in false Medicaid claims.
   
• Scope of the action: Federal officials said the operation spanned 57 federal court districts and 41 states and territories, involving 46 state Medicaid Fraud Control Units in what they described as the department’s largest coordinated antifraud effort to date. They added that authorities seized more than $127 million in cash, luxury vehicles, jewelry and other assets.
   
• Hospice fraud: In one of the cases, prosecutors charged the owner of several healthcare businesses in the Los Angeles area, including at least four hospices, with a scheme that they say involved paying kickbacks and bribes to enroll people who weren’t actually terminally ill in hospice care. Prosecutors allege the scheme resulted in nearly $27.7 million in fraudulent Medicare claims for medically unnecessary hospice services, with Medicare paying about $26.9 million.
   
• Part of the war on fraud: The Trump administration has intensified its focus on what it describes as government waste while launching a so-called “war on fraud.” Democratic critics have argued some of the administration’s efforts are politically motivated attempts to target blue states and programs that conservatives have sought to cut, such as Medicaid, a federal and state program that provides health coverage to millions of low-income people.

Bessent defends proposed Iran sanctions drawdown.

Treasury Secretary Scott Bessent defended the U.S. proposal to relax sanctions on Iran, reports Risk Journal's Richard Vanderford, despite protests that Tehran hasn’t offered meaningful concessions, saying critics of the policy shift need to allow negotiations to unfold (free link).

The two sides have entered into a conditional, performance-based negotiation that will take time, Bessent said Tuesday evening at a gathering of the Economic Club of New York.

“Nothing President Trump can do ever satisfies the media, so I would tell everyone, ‘Sit back, let this process take place,’” Bessent said. “It is going to be a process.”

Disney could have violated anti-bias law, FCC’s Carr says.

Evidence shows Disney’s diversity program might have violated federal law, Federal Communications Commission Chairman Brendan Carr said, promising the agency will continue taking action against employment practices it views as illegal (free link).

Risk Journal reports that the FCC hasn’t made a final decision in the Disney matter. Carr, in a letter to Democratic lawmakers who questioned the agency’s approach toward diversity programs under President Trump, said that the FCC had found evidence against the media and entertainment company.

• Top-ranking Senate Democrats are calling for hearings into a secret $500 million investment into the Trump family’s cryptocurrency venture from a group led by a senior Emirati royal.
   
• The Supreme Court revived a lawsuit Exxon Mobil Corp. brought against oil companies owned by the Cuban government that seeks $1 billion in damages for the oil refinery and service stations Cuba took from the U.S. company after Fidel Castro seized power in 1960.
   
• Alibaba Group filed a lawsuit against the U.S. Department of Defense in a San Jose federal court on Tuesday, seeking to be removed from a list of companies with alleged ties to China’s military.
   
• President Trump said he instructed the Justice Department to look into major oil companies, accusing them of “gouging” customers by not lowering gasoline pump prices in line with falling crude costs.
   
• The Florida attorney general’s office said on Tuesday that it’s probing the relationship between CVS Health’s retail pharmacies and its pharmacy benefit manager business.
   
• The NFL denied former Texas Tech quarterback Brendan Sorsby’s application for the supplemental draft. Sorsby was banned by the NCAA for placing thousands of bets, including on his own team, and later dropped a lawsuit against the organization.
   
• Much of Sam Altman’s wealth is tied up in a vast network of tech companies that include everything from nuclear fusion to a startup trying to create a new city on the Mediterranean. The Wall Street Journal identified dozens of his investments and analyzed the impact of some deals on his wealth.
   
• Avis Budget said late Monday it would collect $650 million from one of its major shareholders, Pentwater Capital Management, to resolve an unusual spat in which it accused the hedge fund of fueling excess volatility in its stock.

Senate passes resolution directing Trump to end hostilities with Iran.

The Senate voted to limit President Trump’s ability to conduct military operations against Iran without congressional authorization after four Republicans joined with Democrats in a stinging rebuke to Trump a week after he signed a memorandum of understanding with Iran.

What it means: The resolution passed by the Senate Tuesday afternoon, in a 50-48 vote, directs the president to remove U.S. armed forces from hostilities against Iran unless explicitly authorized by Congress, other than to defend America, an ally or partner from “imminent attack.” The resolution, previously passed by the House, is nonbinding but marks the first time both chambers of Congress have passed the same measure to curb Trump’s power to wage the war against Iran.

• U.S.-Iranian Trash Talk Is Disrupting Peace Negotiations
• Israel’s Military Is Caught in a Political No Man’s Land in Lebanon

• Russia’s closest ally, Belarus, has emerged as a potential new front in the Kremlin’s confrontation with the West, as Moscow seeks to strengthen its military union with the country and Ukraine threatens strikes on its territory.
   
• Risk Journal reports: The cybersecurity agencies of the U.S., U.K., Canada, Australia and New Zealand—the intelligence-sharing alliance known as Five Eyes—issued a joint warning Monday that frontier artificial intelligence models are poised to fundamentally transform offensive hacking capabilities within months. (free link)
   
• Businesses in the U.S., Europe and parts of Asia reported that a surge in costs triggered by the onset of the conflict in the Middle East cooled in June following a tentative peace agreement, with some also seeing a rebound in activity, surveys published Tuesday indicated.
   
• The election of Abelardo de la Espriella as Colombia’s president marks another step in Latin America’s transformation into a region more deeply aligned with the political style and policy priorities of President Trump.
   
• Iran intends to charge fees for energy product shipments through the Strait of Hormuz after a 60-day pause in fighting. Gulf countries deem Iran’s control unacceptable, prompting increased use of alternative routes like Saudi Arabia’s 7 million barrels/day pipeline.
   
• Houston has set up new flood-monitoring technology designed to alert city officials to waterlogged roads, underpasses and streets during extreme weather events.
   
• Philippine officials reported the removal of a temporary platform at Scarborough Shoal that raised concerns about China’s intentions.
   
• Indonesia will retain its emerging-market status for now after index provider MSCI deferred a decision that could have downgraded the country, providing a welcome respite for a market grappling with a loss of investor confidence.

• President Trump’s push for stricter voter eligibility laws is colliding with a newly defiant Republican Senate, setting up a multifront battle ahead of the midterm elections as his administration lobbies on Capitol Hill for more money to pay for the war in Iran.
   
• Congress on Tuesday passed its most-ambitious housing legislation since the 1980s, a package of more than 50 provisions aimed at making it easier to build homes and make housing more affordable.
   
• The Lake Michigan docks that once received iron ore for a 20th-century steel mill will accept a new delivery this summer aimed at fueling Chicago’s future: components of a quantum computer.
   
• Prime Minister Keir Starmer resigned Monday after a rebellion in his party following Reform UK’s strong performance in May local elections. That means Britain will have six new prime ministers in seven years, with leaders changing every 14 months on average.
   
• The Trump administration is so eager to see a nuclear power renaissance that it is starting to fund billions of dollars for reactor orders.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com and Richard Vanderford at richard.vanderford@wsj.com.

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