A federal judge has sentenced four individuals to more than 14 years in federal prison for running a $12.7 Million “Minnesota-Somali-style fraud” scheme in North Carolina that paid more than $1 Million in kickbacks to drug addicted patients.
The fraudsters, Brandon Eugene Sims, 40; Kimberly Mable Sims, 39; Francine Sims Super, 64; and Keke Komeko Johnson, 53, operated Life Touch, LLC, a now permanently shut down fake substance abuse facility and 1st Choice Healthcare Services, a urine drug screening company.
Between 2018 and 2023, Johnson and Super reportedly oversaw more than $1 million in illegal kickback payments to drug using Medicaid patients.
The kickbacks were meant “to lure patients to show up for costly substance abuse and lab services that Johnson billed to Medicaid on behalf of Life Touch and 1st Choice,” the Eastern North Carolina U.S. Attorney’s Office stated in a press release.
Inmate Sims, Inmate Super’s daughter, owned 1st Choice Healthcare, and paid Medicaid kickbacks to Inmates Super and Johnson for fake lab services ordered by Life Touch, LLC. Meanwhile, Inmate Brandon Sims, who owned Life Touch and resided in Texas, received Millions in illegal proceeds from the Life Touch operation, but failed to file or pay taxes on that money. The gift card kickback scheme resulted in more than $12.7 Million fake billings to the Medicaid program.
The feds seized $6 million in assets from them in 2023, including cash, cars and homes. After becoming aware of the criminal investigation, Brandon Sims “withdrew more than $1 Million in cash from a bank account, hiding it in a safe at his Texas home.”
Agents executed a search warrant and seized $1.3 million in cash, a 2021 Rolls Royce Cullinan, a 2021 Chevrolet Corvette, and a 2020 Chevrolet Silverado.
Agents seized millions more in other real property, the U.S. Attorney’s Office said.
“This is shocking Minnesota-Somali-style fraud right here in North Carolina,” said U.S. Attorney Ellis Boyle in a statement. “For too long, government has allowed grifters to steal taxpayer dollars with impunity. Here, these vultures exploited particularly susceptible drug abusers trying to recover their lives and dignity. Shameful abuse, no remorse. They better learn, and everyone should get the message. Cheaters. Never. Win.”
The Judge sentenced Johnson, the company’s “Compliance Director,” to six years in federal prison and to pay $15,286,912.91 in restitution to North Carolina Medicaid and $331,851.00 to the IRS.