OIG - Office of Inspector General

03/05/2026 | Press release | Distributed by Public on 03/05/2026 14:55

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

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 https://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
OIG - Office of Inspector General published this content on March 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on March 05, 2026 at 20:55 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]