NEW BERN, N.C. (NCN News) – A federal judge has handed down more than 14 years in federal prison to participants in a $12.7 Million Medicaid fraud scheme that paid more than $1 Million in kickbacks to drug addict patients. The case also resulted in the permanent closure of the fake substance abuse facility that carried out the crime, a $15 Million dollar fine, and the seizure of more than $6 Million in criminal proceeds, including cash, cars, and homes.
“This is shocking Minnesota-Somali-style fraud right here in North Carolina. 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.” said U.S. Attorney Ellis Boyle in a press release.
According to court documents, Keke Komeko Johnson, 53, of Goldsboro; Francine Sims Super, 64, of Kinston; Brandon Eugene Sims, 40, of Manvel, Texas; and Kimberly Mable Sims, 39, of Snow Hill; operated Life Touch, LLC, a purported substance abuse facility operating in Kinston and Goldsboro, and 1st Choice Healthcare Services, a urine drug screening company. Between 2018 and 2023, Inmates Johnson and Super oversaw payments of more than $1 Million in illegal kickbacks to Life Touch’s Medicaid patients, who were drug users. They paid these kickbacks to lure patients to show up for costly substance abuse and lab services that Inmate Johnson billed to Medicaid on behalf of Life Touch and 1st Choice. 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.
Inmates Johnson and Super deceived the North Carolina Medicaid in multiple audits. They repeatedly lied and falsified documents to make it appear to Eastpointe, a Managed Care Organization, that Life Touch never paid illegal kickbacks to patients when, in fact, they did. Inmate Johnson later lied again regarding the gift cards during a civil investigation conducted by the Medicaid Investigations Division. At the time of these lies, Inmate Johnson served as the compliance officer for Life Touch, and Inmate Super served as the office manager in Kinston.
During the investigation, federal agents seized and forfeited more than $6 Million in assets in the form of cash, real estate, and other assets. In November 2023, after becoming aware of the criminal investigation, Inmate 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.