Thirty-seven mental health, psychiatric, behavioral health, and substance abuse cases reveal alleged false claims, falsified records, kickbacks, and phantom services—patients harmed while providers pocketed luxury gains.
By Jan Eastgate
President, CCHR International
July 6, 2026
The U.S. Department of Justice’s 2026 National Health Care Fraud Takedown has exposed rampant fraud in mental health, behavioral health, psychiatric, and substance abuse services. As part of a nationwide operation uncovering over $6.5 billion in alleged fraud, 37 cases in these areas represent well over $220–250 million in defrauded funds.[1] These scandals highlight deep systemic failures in the psychiatric and behavioral health industry, where profit-driven motives put vulnerable patients at risk.
Psychiatric and behavioral health providers repeatedly billed government programs—primarily Medicaid—for services never provided, substandard care, treatment by unqualified staff, and inducing beneficiaries to sign for services they barely or never received. In some cases, providers billed for counseling, therapy, transcranial magnetic stimulation (TMS), or other services on dates when the supposed professionals were out of the country. A number of the schemes the DOJ uncovered involved professionals using defrauded funds for luxury purchases, including real estate, vehicles, jewelry, and a yacht.[2]
“Every fraudulent dollar diverted into a criminal scheme is a dollar unavailable for patient care, for medical innovation, or for services for vulnerable Americans,” said Health and Human Services Secretary Robert Kennedy Jr.[3]
Psychiatric Times estimates between 10% and 20% of state mental health funds—$4 to $8 billion—are lost to fraud, waste, and excess profits to for-profit managed care companies.[4] Mark Schlein, former director of Florida’s Medicaid Fraud Control Unit, when investigating massive mental health fraud in the 1990s, commented: “The extent of the fraud is limited only by the imagination.”[5]
At a Congressional roundtable on mental health held in March this year, Dr. David Hyman, adjunct scholar at the Cato Institute and Professor of Health Law & Policy at Georgetown Law, described mental health as a “fraud-laced industry.” He stated, “If you look at the providers that have been excluded from the Medicare and Medicaid programs, psychiatrists punch well above their weight in terms of their likelihood of being excluded from the program” for engaging in a “variety of these frauds.”[6]
Attorney Matthew Curley told Behavioral Health Business, “It’s fair to say that enforcement actions and recoveries regarding behavioral health providers are becoming increasingly significant components of the government’s overall enforcement efforts.”[7]
CCHR has long tracked mental health fraud schemes, briefing healthcare fraud and FBI investigators in the 1990s on common fraud schemes. It uncovered massive fraud in a chain of psychiatric hospitals owned by National Medical Enterprises (NME), which paid over $575 million to settle civil lawsuits and criminal investigations, closing its psychiatric division.[8]
Its 1998 report, Massive Fraud, disclosed fraud schemes that included billing for mental health therapy for a nursing home patient who was in a coma, daily “group therapy” sessions that consisted of giving away free cups of coffee, socializing and listening to music, billing insurers for patient cooking classes and bingo games, and treatment of patients who were dead.[9]
Today, the rise of telepsychiatry has also exacerbated the problem, with more than 20 states flagging fraud, waste, and abuse concerns in behavioral telehealth services.[10] CCHR calls for whistleblowers to confidentially report observed fraud and abuse.[11]
Greater oversight could help reduce government waste, isolate and eradicate harmful practices and provide patient protections.
A summary of the 37 mental and behavioral health care fraud cases from “Case Summaries 2026 National Health Care Fraud Takedown,” U.S. Department of Justice, Criminal Division includes:
Alabama
New Life Center for Change, Inc. d/b/a Teen University; Alfonza Smith (owner) — $300,000: Reached a civil settlement to pay $300,000 to resolve allegations of billing Alabama Medicaid for Basic Living Skills services for at-risk children in its care that were never provided.[12]
Arizona
Jimmy Muyumbu / Motherland Counseling LLC — ~$45 million billed (AHCCCS paid ~$36.7 million). Substance abuse treatment clinic providing addiction treatment services. Charged with conspiracy to commit health care fraud, wire fraud, money laundering, etc. Submitted ~$44.9 million in false/fraudulent claims to Arizona Medicaid (AHCCCS) for services not provided, substandard, or tainted by kickbacks. He was with Arizona Mental Health as a Supervisor from 2019 to 2021 and House Manager at a behavioral home in 2022. He has a degree in Biochemistry and is certified in behavioral drug addiction management.
California
Dr. Richard Dorsey (psychiatrist, Western Orthopaedic Surgical Associates) — ~$1.8 million (overpayments). Falsified psychiatric reports to help claimants fraudulently qualify for federal workers’ compensation and submitted false claims for medical services.[13] He primarily treats through telepsychiatry and localized offices. Licensed in CA, IN, KY, OH, TX.
Florida
Rene Yartu Couceiro / Healthy Minds Medical Center (Miami) Therapist at mental health clinic. Charged with conspiracy to make false statements in a Medicaid/Medicare fraud scheme involving kickbacks. Conducted group therapy but allowed patients to attend only some sessions while signing for full schedules (4 days/week).
Yilian Cruz, Inti Cruz (husband), Adaimis Perez Arencibia / De La Cruz Mental Health LLC (Miami Lakes) — ~$1.31 million billed (Medicaid paid ~$1.17 million). Mental health clinic providing psychosocial rehabilitation (PSR) services. Charged with conspiracy to commit health care fraud involving >$1 million in fraudulent Medicaid reimbursements. The scheme included kickbacks for referrals and to patients, false claims for unprovided PSR services, and diverting proceeds.[14]
Venessa K. Thomas / A Better Life and Community, LLC — $261,804 billed. Licensed mental health counselor. Submitted/caused 2,696 fraudulent claims for telehealth mental health services never rendered, including using IDs of minors obtained unlawfully.
Noel Camacho / Healthy Futures Wellness Center, Inc. — $227,494 billed. Billed ~$227,494 in fraudulent Medicaid claims for psychosocial rehabilitation (“PSR”) services using fake medical records and falsified progress notes.
Georgia
Murrell Carnell Rutledge Jr. / Rutledge Medical Associates LLC (Atlanta) — ~$4.3 million billed (loss ~$2.6 million). Owner/operator. Caused billing of thousands of fraudulent claims to Georgia Medicaid for wound care, psychotherapy, and allergy testing services never performed. In 2011, Rutledge, claiming to be a nurse, was charged with two counts of trafficking in Oxycodone, as well as possession of marijuana and maintaining a drug vehicle.[15] He contracted a therapist/physician to provide individual and group therapy, then submitted thousands of false and fraudulent claims for psychotherapy never provided by this physician.[16]
Avant Interventional Psychiatry / Dr. Okah Justin Anyokwu — $375,000. Outpatient mental health practice. Civil settlement to pay $375,000 for submitting Medicaid claims for psychiatric services under Dr. Anyokwu’s provider number when actually rendered by unlicensed/unenrolled individuals. He is a board-certified psychiatrist licensed in eight states and is currently a member of the American Psychiatric Association. He founded Avant Behavioral Consultants in 2017and operates as Avant Interventional Psychiatry, an outpatient private practice specializing in treatment-resistant psychiatric services, telepsychiatry, therapy, substance abuse treatment, and TMS.[17]
Illinois
Daniel Robinson / ODA Solutions, Inc. (Palos Park) — ~$92.24 million billed (paid ~$75.17 million). Behavioral health counseling/therapy services that were never provided. Charged with health care fraud and money laundering. Billed Illinois Medicaid for impossible volumes (e.g., 500+ hours/day with a limited 16 employees who could not have provided even if they worked 24 hours a day.[18]) Diverted millions to luxury purchases, including real estate, vehicles, jewelry, and a yacht.[19]
Louisiana
Carolyn Brown / Positive Choices Counseling Services Owner/manager. Arrested for Medicaid fraud and filing false public records (involving false CPR certification cards).[20] Licensed professional counselor (LPC) with more than 25 years of experience in behavioral health, who treats pre-teens, adolescents, and adults. Uses Cognitive Behavioral Therapy (CBT), Solution-Focused Brief Therapy, Person-Centered Therapy.[21]
Constance Jones / Life Matters Counseling and Therapy Services — $44,332 Owner. Case involved false CPR certification cards and exclusion checks; ~$44,332 loss.[22] A behavior intervention specialist, certified by the National Anger Management Association.
Amanda Taylor / LA Excel Care. Counselor. Submitted fraudulent claims for services not rendered during overlapping employment periods as a counselor with the East Baton Rouge Parish School System. Licensed Professional Clinical Counselor with a background in education and mental health.
Minnesota
Christine Pryor — >$156,000 Psychotherapy and alcohol/drug counseling. Defrauded Minnesota Medical Assistance by claiming to provide services without required license/credentials.
Montana
Victoria Davenport — ~$2.3 million billed (paid ~$1.14 million). Licensed addiction counselor/clinical professional counselor. Fraudulently billed Medicaid for services under her name (including while she was out of the country); and tampering with evidence.
Alison Watt — ~$249,588 billed (paid ~$134,042). Licensed clinical professional counselor/addiction counselor submitted false and fraudulent claims for services by unlicensed licensure candidates.
Nebraska
Angie Albert (Advanced Practice Registered Nurse) and Brent Conaway (husband) / Albert Behavior Health, LLC d/b/a IHOPE Clinic — ~$4.45 million billed (overpayments ~$977,000). Provided psychotherapy and Spravato (ketamine) nasal spray antidepressant treatment. Submitted false claims to Medicare/Medicaid. Assets seized and subject to forfeiture to date include a motorcycle, two vehicles, and an RV. Additionally, the defendants’ residence is subject to forfeiture.
Phyllis M. Rooney (Kapolei, HI) — $92,582. Trained counselor who treated children, teens, and adults, billed for mental health counseling services not provided; loss to Nebraska Medicaid.
Nevada
Yoselin Elizabeth Sorto Mejia / Salvi Therapeutics, Ltd. — ~$2.78 million billed (received >$2.1 million). False claims for transcranial magnetic stimulation (TMS) services. The Medicaid recipients denied receiving them.
Dayana Santander Morales / DC Medical Center, LLC — >$2.1 million billed (paid ~$1.3 million). Owner. Fraudulent claims made for alpha/electrical stimulation and TMS services (including by providers who were out of country at the time).
North Carolina
Ronnie Lorenzo Robinson Jr. / The Fisher of Men Project, LLC (Charlotte) — $735,000 billed (paid ~$440,000). Psychotherapy services never provided. Used stolen identities; prior $3.4M Medicaid fraud conviction. Robinson concealed his ownership of the company because he had previously been excluded from Medicaid and instead held out another individual as the owner of the company.[23] (In 2015, he was sentenced to 30 months in prison for his role in a $3.4 million Medicaid fraud scheme involving sham mental and behavioral health services and was ordered to serve three years under court supervision and to pay $3,153,074 in restitution to Medicaid. Over the course of the investigation, law enforcement seized a Land Rover Range Rover, a Chevrolet Suburban, a Mercedes and a diamond ring, purchased with money fraudulently obtained from Medicaid.[24])
New York
Aptihealth, Inc. — $300,000. Behavioral health telemedicine company. Civil settlement for billing Medicare/Medicaid for unrendered services and improper gift card incentives for therapy attendance.
Ohio
Dr. Tiffany Bell (psychiatrist) — $197,981. Billed for therapeutic behavioral health services for minors not provided. She was the highest biller for certain services in 2025; unlawfully obtained Medicaid numbers for children to facilitate fraudulent billings.
Oklahoma
Larry Burns (licensed psychologist), Laryn Burns (daughter), Robert Smith — ~$235,000 billed (loss ~$165,000) for psychological evaluations for clients with disabilities. Larry and others created/performed illegal evaluations.
John Parker Kempf — $28,766. Licensed behavioral health counselor. Billed for unrendered therapy services and services to individuals who received none. Indicted for Medicaid fraud, identity theft, and violating the Oklahoma Computer Crimes Act in connection with a scheme to submit false claims.
Pennsylvania
Ghada Mahjoub — $9,845 Licensed behavioral specialist. Fraudulent claims for behavioral specialist services not provided to children in school or community settings. He was charged with Medicaid fraud, theft by deception, and tampering with public records in connection with a scheme to submit fraudulent claims.
Rhode Island
Chijioke Nnanna Egbujo — $220,517. Contracted psychiatrist at a state-funded hospital. Did not perform services, submitted fraudulent time logs while working for multiple providers. Egbujo allegedly did not perform services during the scheduled timeframes, was not present at the assigned worksite, and was simultaneously working for two separate providers. He is board-certified by the American Board of Psychiatry and Neurology and licensed in RI, Connecticut and Pennsylvania.[25]
South Carolina
Jada Yvette Gibbs, Applied Behavior Analysis (ABA) and Registered Behavioral Technician at Wedgefield University for Kids and a Medicaid provider, was indicted for unlawful conduct toward a child (abuse of a 7-year-old Medicaid beneficiary during services). The Sumter County Sheriff’s Office made the initial charges, and the Vulnerable Adults and Medicaid Provider Fraud (VAMPF) Unit of the South Carolina Office of the Attorney General will be prosecuting the case.[26]
In November 2025, WIS 10 News reported: “‘It’s unimaginable’: Sumter County father speaks out after child allegedly abused by therapist.” He discovered bruises and scratches on his daughter’s arm and ribcage. Gibbs was reportedly seen on video aggressively grabbing a child by the upper left arm and back of the neck.[27]
Texas
Prince Paul Agbonlahor et al. / Lahor Behavioral Services, LLC — ~$16 million billed (paid ~$8 million). Mental health services for minors. Counselors created false visit notes/timesheets and billed for services not overseen by qualified practitioners.
Trevor’s Place LLC — $430,281 Applied Behavior Analysis (ABA) clinic. A civil consent judgment was reached for inflated TRICARE claims for unprovided/misrepresented services.
Utah
Johnny Antanio Hankston, Jalon Hankston, Johnny Leonel Tellez / Second Chance Family Services — >$951,000. An outpatient substance abuse treatment. Targeted vulnerable adults, provided little/no services or by unqualified providers. Violations of Utah False Claims Act.
Virginia
Jair Barbour — $345,671 Qualified mental health provider. Falsified progress notes for services that never occurred, dramatically overstated the number of hours she worked, and documented services that were impossible due to overlapping or conflicting times.
Mikia Noble / Advancing Communities Everywhere — $49.6 million billed (paid ~$38.6 million) Crisis mental health services. Targeted low-income/homeless Medicaid recipients with unneeded/unprovided services.
Negril Incorporated; Tammy Wright; Kirby Warren — ~$4.55 million paid. Promotes mental health skill-building services. Billed under a National Provider Identification (NPI), then paid another company 75% of the Medicaid reimbursement and kept 25% for itself. Mental health skill-building services involved the Department of Behavioral Health and Developmental Services credentialing/enrollment.
Virgin Islands
RTS Services Unlimited II, LLC; Melinda Denise Richards; Ashley Doway; Duane Robinson — $3.9 million scheme (paid >$408,000). Behavioral health services that billed for services outside the scope of their licensure, used unlicensed providers, and falsified qualifications.
West Virginia
Helen Crutcher Meadows and Raymond “Rocky” Meadows II / Lifehouse, Inc. — reached a $120,000 civil settlement over Sober living/substance abuse recovery program. Conspired to falsify timesheets for unperformed drug testing work.
[1] Jessica Botelho, “455 people charged in alleged $6.5B healthcare ‘fraud schemes’: DOJ,” Fox SA San Antonio news, 23 June 2026, https://foxsanantonio.com/news/nation-world/455-people-charged-in-alleged-65b-health-care-fraud-schemes-doj-department-of-justice-national-health-care-fraud-takedown-medicare-medicaid-false-claims
[2] “Case Summaries 2026 National Health Care Fraud Takedown,” U.S. Department of Justice, Criminal Division, 24 June 2026, https://www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit/2026-national-hcf-case-summaries
[3] Jessica Botelho, “455 people charged in alleged $6.5B healthcare ‘fraud schemes’: DOJ,” Fox SA San Antonio news, 23 June 2026, https://foxsanantonio.com/news/nation-world/455-people-charged-in-alleged-65b-health-care-fraud-schemes-doj-department-of-justice-national-health-care-fraud-takedown-medicare-medicaid-false-claims
[4] https://www.cchrint.org/2024/04/12/cchr-asks-whistleblowers-to-report-mental-health-hospital-fraud-in-the-u-s/; https://www.psychiatrictimes.com/view/fraud-waste-and-excess-profits
[5] https://www.cchrint.org/2023/02/17/20-billion-in-psychiatric-fraud/; Andrea Orr, “Big Move to Uncover Health Care Fraud,” Reuters Business Report, 20 Aug. 1997
[6] https://www.cchrint.org/2026/04/03/congressional-roundtable-exposes-mental-health-crisis/; “Hidden crisis in US mental health: Why depression and suicide rates are increasing,” Mathrubhumi.com, 30 Mar. 2026, https://english.mathrubhumi.com/lifestyle/health/us-mental-health-crisis-treatment-outcomes-e3leacfz; “Examining Mental Health in the MAHA Age,” COP Committee on Oversight and Government Reform, 26 Mar. 2026, https://www.youtube.com/watch?v=r64DEMMtQD4
[7] https://www.cchrint.org/2023/02/17/20-billion-in-psychiatric-fraud/; Bailey Bryant, “Providers Beware: Behavioral Health Fraud Investigations, Recoveries on the Rise,” Behavioral Health Business, 21 Feb. 2021, https://bhbusiness.com/2020/02/21/providers-beware-behavioral-health-fraud-investigations-recoveries-on-the-rise/
[8] https://www.cchrint.org/2023/02/17/20-billion-in-psychiatric-fraud/
[9] CCHR International, Massive Fraud: Psychiatry’s Corrupt Industry, 1998, Pages 7, 11; Alice Ann Love, “Medicare Finds Psychiatric Fraud,” Associated Press, 29 Sept. 1998; “Mental Health Facility Staff Arrested On Medicaid Fraud Charges,” Florida Attorney General, 6 May 1999; “Mental Health Fraud and Abuse,” Arkansas Senior Medicare/Medicaid Patrol Training Materials – DHHS Division of Aging and Adult Services
[10] https://www.cchrint.org/2026/04/03/congressional-roundtable-exposes-mental-health-crisis; Anuja Vaidya, “Fraud Enforcement Followed Spike in Telemental Care,” Informa TechTarget, 24 Nov. 2021, https://mhealthintelligence.com/news/fraud-enforcement-followed-spike-in-telemental-care
[11] https://www.cchrint.org/2024/04/12/cchr-asks-whistleblowers-to-report-mental-health-hospital-fraud-in-the-u-s/; https://www.cchrint.org/whistleblowers/
[12] “Case Summaries 2026 National Health Care Fraud Takedown,” U.S. Department of Justice, Criminal Division
[13] “Case Summaries 2026 National Health Care Fraud Takedown,” U.S. Department of Justice, Criminal Division
[14] UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA 26-CR-20244-ALTONAGA/REID CASE NO. 18 U.S.C. § 1349 18 U.S.C. § 982(a)(7); USA vs Yilian Cruze and Inti Cruz, 18 June 2026
[15] Karen Voyles, “Atlanta nurse arrested in Gainesville on drug charge,” The Gainesville Sun, 22 Apr. 2011, https://www.gainesville.com/story/news/2011/04/22/atlanta-nurse-arrested-in-gainesville-on-drug-charge/31801216007/
[16] USA vs Murrell Carnel Rutledge Jr., indictment, 2 June 2026
[17] https://www.avantpsychiatry.com/about-us
[18] Ethan Illers, Angelica Sanchez, “Feds: Owner of suburban methadone clinic charged in massive fraud scheme, made lavish purchases including yacht named ‘Butt Nekkid’,” WGN9 Evening News, 23 June 2026, https://wgntv.com/news/southwest-suburbs/methadone-clinic-fraud-scheme/
[19] “Case Summaries 2026 National Health Care Fraud Takedown,” U.S. Department of Justice, Criminal Division
[20] “Case Summaries 2026 National Health Care Fraud Takedown,” U.S. Department of Justice, Criminal Division
[21] https://care.headway.co/providers/carolyn-brown-2
[22] https://www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit/2026-national-hcf-case-summaries
[23] “Former Clinic Owner Sentenced To 2.5 Years In Prison For $3.4 Million Medicaid Fraud Scheme,” U.S. Attorney’s Office, Western District of North Carolina, 7 Jan. 2015, https://www.justice.gov/usao-wdnc/pr/former-clinic-owner-sentenced-25-years-prison-34-million-medicaid-fraud-scheme
[24] “Case Summaries 2026 National Health Care Fraud Takedown,” U.S. Department of Justice, Criminal Division
[25] https://apps.abpn.org/verifycert/?lastName=egbujo&firstName=chijioke; https://providerwire.com/psychiatry-physician/connecticut/simsbury/chijioke-egbujo-1164601548
[26] “ICYMI: South Carolina Attorney General Alan Wilson joins national health care fraud takedown resulting in over $6.5 Billion in alleged fraud,” SC AG, 25 June 2026, https://www.scag.gov/about-the-office/news/icymi-south-carolina-attorney-general-alan-wilson-joins-national-health-care-fraud-takedown-resulting-in-over-6-5-billion-in-alleged-fraud/
[27] Marley Bassett and Lenah Allen, ‘It’s unimaginable’: Sumter County father speaks out after child allegedly abused by therapist.” WIS 10 News, 20 Nov. 2025, https://www.wistv.com/2025/11/22/its-unimaginable-parent-speaks-out-after-child-allegedly-abused-by-therapist/
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