Four sentenced in $12.7M Medicaid fraud scheme tied to Kinston facility

A federal judge has sentenced four people to prison for their roles in a $12.7 million Medicaid fraud scheme that operated through a substance abuse facility in Eastern North Carolina.

According to the U.S. Department of Justice, the case resulted in more than 14 years of combined federal prison time, the permanent closure of Life Touch, LLC, a $15 million fine and the seizure of more than $6 million in criminal proceeds, including cash, vehicles and real estate.

Prosecutors said Life Touch, LLC operated as a substance abuse treatment facility in Kinston and Goldsboro, while 1st Choice Healthcare Services functioned as a urine drug screening company. Between 2018 and 2023, the defendants paid more than $1 million in illegal kickbacks to Medicaid patients, who were drug users, to induce them to receive services that were then fraudulently billed to Medicaid.

The kickback scheme resulted in more than $12.7 million in fraudulent billings to the Medicaid program, according to court documents.

Sentences handed down

Keke Komeko Johnson, 53, of Goldsboro, who served as Life Touch’s compliance director, was sentenced to six years in federal prison. She was ordered to pay more than $15.2 million in restitution to North Carolina Medicaid and more than $331,000 to the IRS. Johnson previously pleaded guilty to health care fraud conspiracy and tax-related charges.

Francine Sims Super, 64, of Kinston, who served as the office manager, was also sentenced to six years in federal prison. She was ordered to pay more than $15.2 million in restitution to Medicaid and nearly $374,000 to the IRS. She pleaded guilty to conspiracy to pay illegal kickbacks, health care fraud and tax charges.

Kimberly Mable Sims, 39, of Snow Hill, was sentenced to two years in federal prison. She was ordered to pay more than $1.8 million in restitution to Medicaid and more than $207,000 to the IRS after pleading guilty to conspiracy and tax-related charges.

Brandon Eugene Sims, 40, of Manvel, Texas, who owned Life Touch, was sentenced to two and a half years in federal prison. He was ordered to pay nearly $1.9 million in restitution to the IRS and to forfeit all proceeds traceable to the scheme. Prosecutors said he failed to file or pay taxes on millions of dollars in illegal proceeds.

In addition, Life Touch, LLC was ordered to dissolve, serve five years of probation and pay a $15 million fine, along with more than $12.7 million in restitution to North Carolina Medicaid.

Four sentenced in $12.7M Medicaid fraud scheme tied to Kinston facility

Assets seized

During the investigation, federal agents seized and forfeited more than $6 million in assets, including cash, real estate and luxury vehicles. Authorities said that after learning of the criminal investigation, Brandon Sims withdrew more than $1 million in cash and stored it in a safe at his Texas home. Agents later seized $1.3 million in cash, a 2021 Rolls Royce Cullinan, a 2021 Chevrolet Corvette and a 2020 Chevrolet Silverado, along with additional property.

Officials respond

U.S. Attorney Ellis Boyle announced the sentences following proceedings before U.S. District Judge Louise W. Flanagan.

The case was investigated by the FBI, IRS Criminal Investigation, the U.S. Department of Health and Human Services Office of Inspector General and the North Carolina Attorney General’s Office Medicaid Investigations Division.

Federal officials said the case underscores ongoing efforts to combat health care fraud and protect public funds intended for vulnerable populations.