Family Fraud Case: $12 Million Medicaid Scam Leads to Prison

A family in North Carolina ran a Medicaid fraud that stole more than $12 million from the public. The scheme involved a drug‑treatment center called Life Touch LLC, owned by Brandon Sims. Sims’ mother and sister helped run the business, making it a “family affair. ” From 2018 to 2023, the center lured patients who were eligible for Medicaid. Patients received gift cards as rewards for showing up to treatment sessions. The more visits they made in a week, the larger the gift card. To hide these payments, the family routed purchases through a church owned by a relative. This trick made it look like charity work, but it was really an illegal incentive plan. Some patients used the gift cards to buy drugs, which made their addiction worse instead of helping them.The center also billed Medicaid for drug tests even when results showed ongoing drug use. Prosecutors say the team ignored those results and kept paying incentives to keep patients enrolled. Altogether, the fraud drained about $12. 7 million that should have gone to legitimate treatment. Federal investigators found many assets tied to the scheme. They seized properties, a 2021 Rolls‑Royce, and more. At Sims’ house in Houston, investigators found $1. 3 million in cash. Sims and others pleaded guilty. Sentences range from 30 months to six years in federal prison. The government is trying to recover about $8 million through asset forfeiture. That amount is roughly two‑thirds of the total loss, a notable recovery in such a large case.