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Over $12 Million Medicaid Fraud Scheme Leads to 14 Years of Prison for Substance Abuse Facility, Owner, Compliance Officer, and Office Manager

NEW BERN, N.C. – A federal judge has handed down more than 14 years in federal prison to participants in a $12.7 Million Medicaid fraud scheme that paid more than $1 Million in kickbacks to drug addict patients. The case also resulted in the permanent closure of the fake substance abuse facility that carried out the crime, a $15 Million dollar fine, and the seizure of more than $6 Million in criminal proceeds, including cash, cars, and homes.

Read more on www.justice.gov

Action Details

  • Date:March 5, 2026
  • Agency:U.S. Attorney's Office, Eastern District of North Carolina
  • Enforcement Types:
    • Criminal and Civil Actions