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Massive Healthcare Fraud Takedown Rocks Eastern NC: Millions Recovered, Professionals Charged
You might have seen headlines about a major federal action, and it's something we all need to understand.
On July 2, 2025, Acting United States Attorney Daniel P. Bubar announced criminal charges against several individuals and a company right here in our region, as part of a massive nationwide healthcare fraud takedown. This isn't just about legal proceedings; it's about safeguarding the integrity of our healthcare system and protecting vital programs like Medicare and Medicaid.
What Happened? The Big Picture of the Takedown
This isn't an isolated incident; it's part of the U.S. Department of Justice’s 2025 National Health Care Fraud Takedown, a truly extensive, strategically coordinated law enforcement effort. Across the nation, this monumental action resulted in criminal charges against 324 defendants. The alleged schemes involved an astounding over $14.6 billion in intended loss and the diversion of more than 15 million pills of illegally diverted controlled substances.
To combat these illicit activities, the United States has already seized over $245 million in cash, luxury vehicles, and other assets in connection with the takedown. As Acting U.S. Attorney Daniel P. Bubar emphasized, "Fraud against our healthcare system is not a victimless crime – it threatens patient care, burdens taxpayers, and undermines trust in critical programs". Attorney General Pamela Bondi reinforced this, stating that the takedown sends a clear message to those who prey on vulnerable citizens and steal from taxpayers.
Eastern NC at the Forefront of the Fight Against Fraud
Our very own Eastern District of North Carolina played a significant role in this national effort, with several key cases announced. These cases highlight different facets of healthcare fraud, from illicit kickbacks to fraudulent billing practices.
Substance Abuse Services & Patient Kickbacks: At the heart of one major local case is Life Touch, LLC, a North Carolina substance abuse treatment company. Kimberly Mable Sims (a lab company owner), Francine Sims Super (an office manager), and Keke Komeko Johnson (a compliance officer) were charged in connection with paying more than $1 million in illegal remunerations in the form of gift cards to patients. These payments were allegedly made to induce patients to attend substance abuse services, with payments often based on the number of days per week services were received. This scheme reportedly resulted in more than $25 million in payments from Medicaid to Life Touch. To compound the fraud, false statements were allegedly made to Medicaid auditors regarding these ongoing practices at Life Touch and the lab company. Additionally, Life Touch staff also reportedly received kickbacks from a lab company it utilized for drug testing services. In this specific case, more than $6 million in assets, including cash and real estate, have been seized. Both Super and Johnson also face charges for failure to file tax returns. Life Touch and Brandon Eugene Sims were previously charged in this case.
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Durable Medical Equipment (DME) Scheme: Another significant case involves Randal Fenton Wood, 56, of Flagler Beach, Florida, who was charged with conspiracy to commit healthcare fraud. This scheme targeted Medicare, the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA), and other insurance programs. The alleged fraud involved billing for medically unnecessary durable medical equipment (DME), such as braces and pneumatic compression devices. Marketing entities would reportedly solicit Medicare beneficiaries, illegally waive copays, and pressure them into accepting equipment without confirming medical necessity. This beneficiary information and pre-filled orders were then sold to Wood and other DME supply companies, who employed a "doctor chase" model to pressure physicians into signing or altering orders so they could be billed in full. Through this illicit operation, the DME supply companies owned by or affiliated with Wood received over $39 million in reimbursement from Medicare.
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Mental Health Billing Misconduct: In addition to the cases part of the National Enforcement Action, Acting United States Attorney Bubar also announced the convictions of several healthcare and mental health practitioners in connection with an investigation into billing and documentation practices by Medicaid mental health providers Our Treatment Center and Partners Against Sexually Transmitted Diseases, both operating in Raleigh, North Carolina.These individuals pled guilty to either conspiracy to make and use materially false writings and documents relating to health care matters or making and using materially false writings and documents relating to health care matters, facing up to 5 years of imprisonment each at sentencing, which remains pending:
Dawn Marie Meacham, 61, of Raleigh, a Licensed Clinical Mental Health Counselor (LCMHC)
Kim Jones Kelly, 68, of Greenville, a Licensed Clinical Addiction Specialist (LCAS)
Pius Ondachi, 54, of Raleigh, a Licensed Clinical Mental Health Counselor (LCMHC)
Tequila Vinson Bogan, 48, of Smithfield, a Licensed Clinical Mental Health Counselor (LCMHC)
Ifeoma Ezugwu, 56, of Raleigh, a Licensed Clinical Social Worker Associate (LCSWA)
Queensly Onuzulike, 49, of Raleigh, a Licensed Clinical Social Worker (LCSW)
Tamika Rochaelle Autry, 29, of Wilson, a Certified Peer Support Specialist and Qualified Practitioner
Why This Matters: The Real Impact of Healthcare Fraud
It's easy to think of fraud as a "paper crime," but the reality is far different. As emphasized by various law enforcement officials:
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"These schemes drain taxpayer-funded government programs designed to assist citizens who may not otherwise be able to afford healthcare". FBI Charlotte Acting Special Agent in Charge James C. Barnacle Jr. highlighted the tireless work to stop such fraud and protect program integrity.
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"Healthcare fraud isn’t a crime that only exists on paper".
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These actions by individuals who were "entrusted to help provide health care and necessary medical tests to patients" are a betrayal, as they instead "used patients’ information to commit Medicaid fraud". North Carolina Attorney General Jeff Jackson expressed gratitude for the efforts of the Medicaid Investigations Division and other partners in holding these fraudsters accountable.
The U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) stresses that those participating in federal healthcare programs are expected to obey laws that preserve program funds. The VA Office of Inspector General also underscored its commitment to investigate those who defraud VA healthcare programs.
Essentially, these fraudulent activities don't just cost money; they undermine the very trust we place in our healthcare providers and the systems designed to protect our health and well-being.
The Agencies Fighting Back
This massive takedown is a testament to incredible collaboration between multiple federal and state agencies, including:
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The U.S. Attorney’s Office for the Eastern District of North Carolina
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The U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG)
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The Federal Bureau of Investigation (FBI)
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The Internal Revenue Service Criminal Investigation (IRS-CI)
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The VA Office of Inspector General (VA OIG)
The North Carolina Attorney General’s Office – Medicaid Investigations Division
Special Assistant U.S. Attorney Tasha Gardner and Assistant U.S. Attorney William M. Gilmore are prosecuting the Life Touch cases, while Assistant U.S. Attorney David G. Beraka is handling the Randal Wood case. Special Assistant United States Attorney Tasha C. Gardner also serves as prosecutor on each of the mental health practitioner cases.
What's Next? Accountability and Continued Vigilance
For those who have pled guilty, sentencing remains pending, with potential imprisonment of up to 5 years on the charge. This ongoing effort underscores the resolve of law enforcement to pursue those who attempt to profit by violating federal law and jeopardizing public resources. It's a clear message: those who exploit federal relief programs for personal gain will be held accountable.
Stay Informed, Stay Safe
The scale of this healthcare fraud takedown is truly eye-opening. It serves as a vital reminder of the constant efforts required to protect our healthcare systems and taxpayer dollars. By understanding these issues, we can all contribute to a more transparent and trustworthy healthcare environment. Let's continue to support the agencies working tirelessly to hold offenders accountable and ensure our critical healthcare programs remain strong for those who truly need them.
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