Michigan Adult Day Care Owner Pleads Guilty to $539K Medicare Fraud, Billed for Dead and Hospitalized Patients
FARMINGTON HILLS, Mich. – A Michigan woman pleaded guilty Monday to conspiracy to commit health care fraud for billing Medicare more than $539,000 in false claims for psychotherapy services that were never provided, including charges submitted for beneficiaries who were hospitalized or already deceased.
Yolanda Matthews, 58, of Farmington Hills, admitted in court documents to systematically submitting fraudulent claims to Medicare for services purportedly rendered at her adult day care center.
According to the plea, Matthews billed for psychotherapy sessions during periods when the named Medicare beneficiary was actually admitted to a hospital, forged claims using the names of social workers who were no longer employed at the facility, and continued to bill Medicare for psychotherapy services after the beneficiaries had died. In total, Matthews submitted over $539,000 in false and fraudulent claims.
Matthews was charged as part of the 2026 National Health Care Fraud Takedown. She pleaded guilty to one count of conspiracy to commit health care fraud and now faces a maximum penalty of 10 years in prison.
Sentencing is scheduled for Nov. 18, 2026. A federal district court judge will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Kentucky Addiction Clinic CEO, Doctor, Billing Manager Sentenced to Prison for $4.8M Medicare and Medicaid Fraud Scheme
HOUSTON / PAINTSVILLE, Ky. – A Texas businessman, a Kentucky physician, and a Kentucky billing manager have been sentenced to federal prison for orchestrating a scheme that fraudulently billed Medicare and Kentucky Medicaid more than $4.8 million through a network of opioid addiction treatment clinics.
Michael Bregenzer, 53, of Houston, Texas, the former CEO of Kentucky Addiction Centers (KAC), was sentenced Monday to 48 months in prison, followed by three years of supervised release. Dr. José Alzadon, 62, of Paintsville, who served as KAC’s medical director, received a 60‑month sentence in February 2026. Barbie Vanhoose, 63, of West Van Lear, Kentucky, the clinic’s billing manager, was sentenced to 24 months in January 2026. All three were ordered to pay restitution of $812,881.09.
According to evidence presented at trial, the defendants operated the fraud through KAC facilities in Winchester, Paducah, Paintsville, and London, Kentucky. As medical director, Alzadon prescribed Suboxone, a controlled substance used to treat opioid addiction, while Bregenzer ran the company and Vanhoose managed billing. Together, they submitted false claims to taxpayer‑funded programs for medical services that were never provided or that were billed as more complex and expensive than what patients actually received.
The conspiracy also involved billing for services under the name of Alzadon’s elderly father, who had not provided the care; the father’s credentials—including his DEA registration number and electronic prescribing token—were used to prescribe Suboxone for patients he had never seen, in part because Alzadon himself was not credentialed with certain health plans.
In March 2025, all three were convicted at trial of conspiracy to commit health care fraud, eight counts of health care fraud, and conspiracy to distribute controlled substances using another person’s registration number. Alzadon and Vanhoose were also convicted of two counts of aggravated identity theft.
Four Minnesota Men Plead Guilty to $2.2M Medicaid Fraud, Used ChatGPT to Forge Records for 350 Fake Clients
MINNEAPOLIS – Four Minnesota men have pleaded guilty to wire fraud charges for stealing approximately $2.2 million from the state’s Housing Stabilization Services (HSS) program, using artificial intelligence to generate falsified records in an attempt to conceal the scheme from insurers.
Moktar Hassan Aden, 31; Mustafa Dayib Ali, 29; Khalid Ahmed Dayib, 26; and Abdifitah Mohamud Mohamed, 27, all of the Twin Cities area, operated out of the notorious Griggs-Midway Building in St. Paul through their company, Brilliant Minds Services LLC. The defendants enrolled the business as a Medicaid provider and promised to assist individuals with disabilities, seniors, and those with mental illnesses or substance use disorders in finding and maintaining housing through the now-defunct HSS program. Instead, they submitted thousands of claims for services never rendered or significantly inflated the billing amounts for higher reimbursements.
When insurance companies requested supporting documentation, the defendants turned to generative AI, using ChatGPT to fabricate records to back their false claims. In total, from April 2022 through April 2025, the group billed Medicaid for approximately 350 beneficiaries while doing nothing to assist them, netting roughly $2.2 million in illicit proceeds.
“These defendants corruptly exploited vulnerable people and a vulnerable program to enrich themselves,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Taxpayer dollars designed to provide shelter and support for the homeless and needy instead went to the pockets of these men. They have now admitted their fraudulent conduct and will face justice for their crimes.”
U.S. Attorney Daniel N. Rosen for the District of Minnesota echoed the sentiment, stating, “Medicaid fraud is a serious offense with real consequences. These defendants stole funds intended to support vulnerable Minnesotans who rely on housing and recovery services. Their guilty pleas underscore my office’s commitment to holding accountable those who exploit public programs.”
In separate hearings held between July 7 and July 23, 2026, each defendant pleaded guilty to one count of wire fraud and faces a maximum penalty of 20 years in prison. Sentencing dates have not yet been set by the court.
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