Attorney General Steve Marshall announced on Wednesday that the state had been awarded $300,000 after the federally led 2026 National Healthcare Fraud Takedown, in which law enforcement across the country targeted fraud in government-funded health care programs.
The National Health Care Fraud Takedown, initiated by the U.S. Department of Justice, but heavily participated in by Alabama, resulted in criminal charges against 455 defendants. It included 90 doctors and other licensed professionals across 56 federal districts for their alleged involvement in healthcare fraud schemes totaling more than $6.5 billion.
In Alabama, the United States Attorney's Office for the Middle District of Alabama in Montgomery reached a settlement with Alfonza Smith, 72, of Smiths Station.
Smith, the owner of Teen University, contracted with the Alabama Department of Human Services to provide room, board and services to children with emotional and behavioral management problems. Under the contract, Teen University agreed to provide two hours of basic living skills per resident per day.
An investigation conducted by the Attorney General's Medicaid Fraud Control Unit, following a referral from the Alabama Medicaid Agency's Program Integrity Unit, determined that the required two hours were not being routinely provided to residents.
The matter was resolved with Teen University, which is no longer a Medicaid provider, agreeing to repay $300,000 to the agency.
"The National Healthcare Fraud Takedown exists because fraud in government healthcare programs is a serious, ongoing threat. When providers take taxpayer money without delivering the services they promised, we will find them, and there will be consequences,” Marshall said. "We will continue to pursue those who defraud government healthcare programs, and we are proud to stand alongside our federal partners in this important national effort."
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