Kentucky Medical Biller Indicted for Healthcare Fraud and Money Laundering Charges

LEXINGTON, KY- A Kentucky medical biller and owner of AA's Medical Coding and Billing Services, LLC., Jacqueline Sanders, age 60, from Louisville, Ky., was indicted for one count of conspiracy to commit health care fraud, 25 counts of health care fraud, and four counts of money laundering.

According to the indictment, Sanders recruited individuals unfamiliar with Medicaid requirements to open behavioral health service entities, handled their credentialing and enrollment with Kentucky Medicaid, and then directed the submission of fraudulent Medicaid claims across ten behavioral health providers. Sanders allegedly billed for services that were never provided-including claims submitted for incarcerated, hospitalized, or deceased Medicaid members.

The indictment further alleges Sanders used National Provider Identifiers (NPIs) of licensed professionals without authorization to submit thousands of fraudulent claims, fabricated assessments and treatment plans, and billed Medicaid for excessive hours of treatment regardless of medical need or documentation. Between 2020 and 2026, Sanders and her co-conspirators allegedly caused Medicaid to pay tens of millions of dollars in fraudulent reimbursements.

The indictment alleges Sanders personally received more than $3.6 million in payments from the fraudulent billing operations and used the proceeds to purchase luxury goods, vehicles, jewelry, travel, plastic surgery, and real estate.

"The indictment alleges an astonishing level of fraud: fabricated assessments, nonexistent treatment, unauthorized use of licensed providers' identities, causing millions of dollars in false claims to be submitted for services that were never performed," Jason Parman, U.S. Attorney for the Eastern District of Kentucky. "Medicaid exists to support Kentucky's most vulnerable residents, and this scheme exploited that mission at every turn. Our office will continue to hold accountable anyone who abuses taxpayer-funded programs for personal gain."

"The charges should send a clear message to anyone looking to enrich themselves at the expense of our most vulnerable citizens: don't," said Olivia Olson, Special Agent in Charge, FBI Louisville Field Office. "Public resources exist for the public good, and the FBI will do everything in its power to ensure those resources go to those legally entitled to them."

"This criminal defrauded a system intended to care for some of the most vulnerable Kentuckians," said Kentucky Attorney General Russell Coleman. "Those who steal from the program will face consequences, and we will continue working with our partners like U.S. Attorney Parman to protect Medicaid for those it serves."

Jason Parman, United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; and Russell Coleman, Kentucky Attorney General, jointly announced the indictment.

The investigation was conducted by the FBI and the Kentucky Attorney General's Office. Assistant U.S. Attorney Kate K. Smith and Special Assistant U.S. Attorney Linsey Hogg are prosecuting the case on behalf of the United States.

Sanders appeared for her initial appearance on August 26.

Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.