A federal judge in New Bern, North Carolina, has sentenced four individuals and a substance abuse facility to more than 14 years in prison for orchestrating a Medicaid fraud scheme totaling $12.7 million. The case involved Life Touch, LLC, a substance abuse facility operating in Kinston and Goldsboro, and 1st Choice Healthcare Services, a urine drug screening company.
According to court documents, Keke Komeko Johnson of Goldsboro and Francine Sims Super of Kinston oversaw the payment of over $1 million in illegal kickbacks to Medicaid patients with substance use disorders. These payments were used to entice patients to attend costly substance abuse and laboratory services that were then billed to Medicaid by Life Touch and 1st Choice. Kimberly Mable Sims of Snow Hill owned 1st Choice Healthcare and paid kickbacks for fake lab services ordered by Life Touch. Brandon Eugene Sims of Manvel, Texas, who owned Life Touch, received millions in illegal proceeds but did not file or pay taxes on those earnings.
The fraudulent operation resulted in more than $12.7 million in false billings submitted to the Medicaid program. Johnson and Super deceived North Carolina Medicaid during multiple audits by falsifying documents and lying about the nature of payments made to patients. Johnson also lied during a civil investigation conducted by the Medicaid Investigations Division while serving as compliance officer for Life Touch; Super was the office manager at the time.
Federal agents seized over $6 million in assets connected to the scheme, including cash, real estate, vehicles such as a Rolls Royce Cullinan and Chevrolet Corvette, and other property. In November 2023, after learning about the investigation, Brandon Sims withdrew over $1 million from his bank account and hid it at his home before it was recovered by authorities.
Sentences handed down include six years each for Johnson (compliance director) and Super (office manager), two years for Kimberly Sims, and two-and-a-half years for Brandon Sims. Restitution orders require repayment of more than $30 million combined to North Carolina Medicaid and the IRS. Life Touch was fined $15 million, ordered dissolved, placed on probation for five years, and required to repay over $12 million in restitution.
“Healthcare Fraud robs American taxpayers and betrays the very programs meant to protect our most vulnerable citizens. In this case, more than $12 million was stolen by these defendants directly from those who need it most,” said Reid Davis, FBI Special Agent in Charge North Carolina. “These defendants now face more than 170 months in federal prison, over $30 million in restitution to North Carolina Medicaid, and a $15 million fine. This outcome sends a clear message: those who defraud public healthcare programs will be held accountable.”
“Fraud against our healthcare and tax systems is a crime and betrays public trust,” said Donald “Trey” Eakins, Special Agent in Charge of IRS Criminal Investigation’s Charlotte Field Office. “Tax evasion depletes resources intended for those in need and compromises our communities. IRS-CI special agents, in collaboration with the U.S. Attorney’s Office and other partners, will continue to target those who exploit federal programs for personal gain, ensuring taxpayer funds are protected.”
“These defendants orchestrated an egregious scheme involving illegal kickbacks, placing greed above patient care. Fraudulent operations like this undermine the availability of federal health care program funds intended to support millions of beneficiaries,” said Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG). “Together with our law enforcement partners HHS‑OIG will continue to safeguard the integrity of Medicaid and other federally funded health care programs.”
U.S District Judge Louise W. Flanagan issued sentencing after an investigation led by agencies including the FBI; IRS; U.S Department of Health & Human Services-OIG; North Carolina Attorney General’s Office – Medicaid Investigations Division; with prosecution handled by Assistant U.S Attorney William M Gilmore & Special Assistant U.S Attorney Tasha Gardner.
