A North Carolina family at the center of a multimillion-dollar Medicaid fraud scheme has been sentenced to federal prison after prosecutors say they orchestrated a yearslong operation that siphoned more than $12 million from taxpayers, according to reporting Wednesday by Newsmax crime correspondent Jason Mattera.
Mattera told "Wake Up America" that federal authorities described the case as a deliberate and coordinated fraud involving a drug treatment facility and multiple family members.
According to court records, Brandon Sims owned and operated Life Touch LLC, a drug treatment center that prosecutors say served as the hub of the scheme. His mother and sister allegedly assisted in running the operation, making it what investigators called a "family affair."
From 2018 through 2023, authorities say Medicaid-eligible patients were enticed to attend the clinic through illegal kickbacks, often in the form of gift cards. Patients were allegedly rewarded based on attendance, with payments increasing depending on how many sessions they attended in a given week.
Investigators say the defendants attempted to conceal the payments by routing gift card purchases through a relative's church, creating the appearance of charitable activity. Prosecutors say the effort was designed to mask what was, in reality, an illegal incentive program.
The scheme had further consequences. Authorities allege that some patients used the gift cards to purchase drugs, worsening their addictions rather than aiding recovery.
Prosecutors also say the clinic billed Medicaid for drug testing services regardless of patient outcomes. Even when test results showed continued drug use, officials allege the defendants ignored the findings and continued providing incentives to keep patients enrolled.
In total, the fraud ring is accused of draining approximately $12.7 million from Medicaid — funds that were intended for legitimate treatment services.
Federal agents uncovered significant assets during the investigation. Authorities report multiple properties tied to the operation, along with luxury items including a 2021 Rolls-Royce.
During a search of Sims' residence in Houston, Texas, investigators discovered $1.3 million in cash.
"This wasn't accidental," prosecutors said. "This was a systematic plan."
Several individuals connected to the scheme, including Sims, have pleaded guilty. Sentences handed down range from 30 months to six years in federal prison.
The federal government is now seeking to recover stolen funds through asset forfeiture and expects to reclaim roughly $8 million — around two-thirds of the total loss. While not a full recovery, officials say it represents a significant outcome in a large-scale fraud case.
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Brian Freeman ✉
Brian Freeman, a Newsmax writer based in Israel, has more than three decades writing and editing about culture and politics for newspapers, online and television.
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