KINSTON, N.C. — Four individuals connected to substance abuse treatment facilities in Kinston and Goldsboro have been sentenced to a combined 14 years in federal prison for their roles in a $12.7 million Medicaid fraud scheme that involved paying kickbacks to patients with addiction, according to the U.S. Attorney's Office for the Eastern District of North Carolina.
U.S. District Judge Louise W. Flanagan handed down sentences in early 2026 to participants in the fraud scheme, which operated from 2018 through 2023 through two related companies: Life Touch LLC, which provided substance abuse services, and 1st Choice Healthcare Services, which conducted urine drug screening, as reported by local news outlets.
Keke Komeko Johnson, 53, who served as compliance director, received the longest sentence of six years in federal prison, according to the U.S. Attorney's Office. Francine Sims Super, 64, the office manager, also received six years. Brandon Eugene Sims, 40, of Manvel, Texas, who owned Life Touch LLC, was sentenced to 30 months, while Kimberly Mable Sims, 39, of Snow Hill, North Carolina, who owned the drug screening company, received a two-year sentence.
The defendants used gift cards and other incentive payments to entice individuals struggling with addiction to attend treatment sessions and drug testing appointments, then submitted fraudulent claims to Medicaid totaling $12.7 million over the five-year period, according to federal prosecutors. The scheme involved more than $1 million in illegal kickback payments to attract Medicaid-eligible patients.
Federal regulations prohibit healthcare providers from offering remuneration to induce patients to receive services that will be billed to government healthcare programs. Such kickbacks undermine the integrity of healthcare decisions and inflate costs to taxpayers.
Johnson and Super allegedly falsified documentation during audits to conceal the fraudulent billing practices, as reported by the Goldsboro Daily News. Johnson pleaded guilty in August 2025 to healthcare fraud conspiracy, making illegal payments to beneficiaries, creating false documents, and tax violations.
"This was shocking Minnesota-Somali-style fraud right here in North Carolina," U.S. Attorney Ellis Boyle stated, according to ABC11's coverage of the sentencing.
Asset Seizures and Financial Penalties
Authorities seized more than $6 million in criminal proceeds from the defendants, according to the U.S. Attorney's Office. The forfeited assets included luxury vehicles such as a 2021 Rolls-Royce Cullinan, a 2021 Chevrolet Corvette, and a 2020 Chevrolet Silverado, along with real estate holdings and approximately $1.3 million in cash.
During a November 2023 search of Brandon Sims' residence in Texas, federal agents recovered over $1 million in cash hidden in a safe, as reported by WITN.
Life Touch LLC itself was sentenced as a corporate entity to permanent dissolution, a $15 million fine, five years of probation, and restitution of $12,762,511.30, according to WCTI12. The total restitution ordered across all defendants exceeds $15 million to Medicaid programs and $2.5 million to the Internal Revenue Service.
Brandon Sims was specifically convicted of failing to file federal tax returns on the illegal proceeds generated through the fraud scheme, according to the Goldsboro Daily News.
Investigation and Prosecution
The investigation was conducted jointly by the Federal Bureau of Investigation, IRS Criminal Investigation, the U.S. Department of Health and Human Services Office of Inspector General, and the North Carolina Attorney General's Medicaid Investigations Division, as reported by WCTI12.
The four defendants were sentenced on separate dates between January and March 2026. Francine Super received her sentence on January 6, 2026; Brandon Sims and Life Touch LLC on February 19, 2026; Keke Johnson on February 24, 2026; and Kimberly Sims on March 2, 2026, according to the North Carolina Department of Justice.
North Carolina Attorney General Jeff Jackson announced the sentencings, highlighting the collaborative prosecution effort between his office's Medicaid Investigations Division and the U.S. Attorney's Office for the Eastern District of North Carolina.
Understanding Medicaid Fraud in Substance Abuse Treatment
Medicaid fraud in substance abuse treatment settings represents a particularly harmful category of healthcare fraud, as it exploits vulnerable individuals struggling with addiction while simultaneously draining public resources intended to provide legitimate treatment services.
Federal and state Medicaid programs rely on accurate billing from healthcare providers to ensure that taxpayer funds support genuine medical care. When providers offer kickbacks to attract patients regardless of medical necessity, the entire system's integrity is compromised.
Substance abuse treatment facilities receive Medicaid reimbursement for services such as counseling, medication-assisted treatment, and drug screening when those services are medically necessary and properly documented. Federal anti-kickback statutes exist specifically to prevent providers from inducing patients to receive services primarily to generate billing revenue rather than to address genuine treatment needs.
Reporting Medicaid Fraud
Individuals who suspect Medicaid fraud, waste, or abuse in healthcare facilities can report concerns to several agencies. The U.S. Department of Health and Human Services Office of Inspector General operates a fraud hotline at 1-800-HHS-TIPS (1-800-447-8477). Reports can also be submitted online at https://oig.hhs.gov.
In North Carolina, suspected Medicaid fraud can be reported to the North Carolina Department of Justice, Medicaid Investigations Division, through their website or by contacting the Attorney General's office directly.
The National Long-Term Care Ombudsman Resource Center provides assistance to individuals with concerns about care facilities at 1-800-677-1116, and additional resources are available at https://ltcombudsman.org.
Healthcare fraud prosecution represents a priority for federal and state law enforcement agencies, as these schemes divert billions of dollars annually from programs intended to serve vulnerable populations. The permanent closure of Life Touch LLC and the substantial prison sentences handed down in this case demonstrate the serious consequences faced by those who exploit public healthcare programs for personal enrichment.
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