U.S. Attorney Moore Capito Announces Fraud Conspiracy Charges Against Sober Living Home Founder and Spouse

CHARLESTON, W.Va. - United States Attorney Moore Capito announced criminal charges today alleging Raymond C. Meadows II and his wife Helen Crutcher Meadows conspired to commit wire fraud through their roles at Lifehouse Inc., a nonprofit, long-term, faith-based substance abuse recovery program headquartered in Huntington. The charges filed in federal court are part of the Department of Justice's 2026 National Health Care Fraud Takedown.

"As alleged in the criminal complaints, these defendants viewed West Virginia's addiction crisis not as a tragedy, but as an opportunity," Capito said. "While families buried loved ones, communities fought to save lives, and taxpayers funded efforts to combat substance abuse, they allegedly exploited the system for personal gain. The damage from conduct like this extends far beyond dollars and cents - it robs communities of resources, undermines recovery efforts, and betrays public trust. We will continue to pursue fraudsters who enrich themselves through the misery of others and hold them fully accountable."

Capito also announced a $120,000 civil settlement that resolves allegations involving claims submitted by West Virginia Sleep Centers LLC, a Beckley sleep laboratory, to Medicaid and the Veterans Administration Community Health program.

The charges and settlement announced today by Capito are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today's Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI's Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor's offices to corporate boardrooms.

Today's coordinated enforcement action involves a whole-of-government approach, including:

• Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
• 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General ("HHS-OIG") under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
• Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
• 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.

The following individuals were charged in the Southern District of West Virginia:

• Raymond "Rocky" Meadows II, 52, of Huntington, West Virginia, was charged by criminal complaint with conspiracy to commit wire fraud [18 U.S.C. § 1349]. As alleged in the complaint, Meadows, was founder and director of Lifehouse, Inc., a non-profit, long-term, faith-based substance abuse recovery program headquartered in Huntington, Cabell County, West Virginia. Lifehouse served as a sober living community and received expense reimbursements through both state and federal government grant programs. Meadows conspired with his wife and another individual to falsify and submit timesheets to a testing laboratory for drug testing work not actually performed. The scheme included Meadows's wife routinely billing 32 hours of overtime each week for months at a time, as well as billing for hours when she was with him on out-of-state vacations. The laboratory issued payments based on the fraudulent billings and subsequently obtained reimbursement from federal and state healthcare programs. The case is being prosecuted by AUSA Jonathan T. Storage of the U.S. Attorney's Office for the Southern District of West Virginia.
• Helen Crutcher Meadows, 49, of Tampa, Florida, was charged by criminal complaint with conspiracy to commit wire fraud [18 U.S.C. § 1349]. As alleged in the complaint, Meadows was the collector supervisor at Lifehouse, Inc., a non-profit, long-term, faith-based substance abuse recovery program headquartered in Huntington, Cabell County, West Virginia. Lifehouse served as a sober living community and received expense reimbursements through both state and federal government grant programs. Meadows was also the wife of Lifehouse founder and director Raymond Meadows. She conspired with her husband and another individual to falsify and submit timesheets to a testing laboratory for drug testing work not actually performed. The scheme consisted of Helen Meadows routinely billing 32 hours of overtime each week for months at a time, as well as billing for hours when she was with her husband, Raymond Meadows, on out-of-state vacations. The laboratory issued payments based on the fraudulent billings and subsequently obtained reimbursement from federal and state healthcare programs. The case is being prosecuted by AUSA Jonathan T. Storage of the U.S. Attorney's Office for the Southern District of West Virginia.

The following settlement was announced in the Southern District of West Virginia:

• West Virginia Sleep Centers, LLC, a West Virginia sleep laboratory located in Beckley, West Virginia, reached a civil settlement to pay $120,000 to resolve allegations that the company submitted claims for payment to Medicaid and the Veterans Administration Community Health program for sleep studies and polysomnogram reports that were prepared and signed by unqualified, non-physician staff during the period from January 1, 2016 through January 9, 2020. The case was settled by AUSA Gregory P. Neil of the U.S. Attorney's Office for the Southern District of West Virginia, the U.S. Department of Veterans Affairs Office of Inspector General, and the West Virginia Attorney General's Medicaid Fraud Control Unit.

The cases are being prosecuted by the Health Care Fraud Unit's National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys' Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General's Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virgina participated in the investigation of federal cases announced today.

Descriptions of each case involved in today's enforcement action are available on the Department's website here.

The Southern District of West Virginia, in particular, worked with the Department's Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); the Federal Bureau of Investigation (FBI), the West Virginia Attorney General's Medicaid Fraud Control Unit, and the Huntington Police Department.

On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A copy of this press release is located on the website of the U.S. Attorney's Office for the Southern District of West Virginia.

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