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NC Medicaid Fraud: $12.7M Scheme Nets 14 Years Prison

KINSTON, NC — Four individuals received over 14 years in combined federal prison sentences for orchestrating a $12.7 million Medicaid fraud operation through substance abuse treatment facilities in Kinston and Goldsboro, according to the U.S. Attorney's Office for the Eastern District of North Carolina.

Four Sentenced in $12.7 Million Medicaid Fraud Scheme Tied to North Carolina Clinics

According to federal prosecutors, Keke Komeko Johnson, 53, of Goldsboro; Francine Sims Super, 64, of Kinston; Brandon Eugene Sims, 40, of Manvel, Texas; and Kimberly Mable Sims, 39, of Snow Hill operated Life Touch LLC, a substance abuse treatment company with locations in Kinston and Goldsboro, along with 1st Choice Healthcare Services, a urine drug screening facility in Kinston.

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The scheme ran from 2018 through 2023, as reported by North Carolina Attorney General Jeff Jackson's office. Federal investigators found that the operators paid over $1 million in illegal kickbacks to drug-addicted patients to entice them to attend unnecessary treatment sessions and drug screenings that were then billed to North Carolina Medicaid.

The Fraud Operation

Johnson served as compliance officer at Life Touch, while Super functioned as office manager at the Kinston location, according to court documents. Brandon Sims owned Life Touch while residing in Texas, and his sister Kimberly Sims owned the associated drug screening company, 1st Choice Healthcare Services.

According to the IRS Criminal Investigation division, the kickbacks were paid using gift cards and other incentives to lure Medicaid beneficiaries into services that generated fraudulent billing. Over the five-year period, the facilities submitted more than $12.7 million in false claims to North Carolina Medicaid while Brandon Sims received millions in proceeds without paying federal taxes, as reported by federal prosecutors.

When Brandon Sims learned of the federal investigation in November 2023, he withdrew over $1 million in cash and concealed it in a safe at his Texas residence, according to the U.S. Attorney's Office. Federal agents executing a search warrant recovered the hidden cash along with additional assets.

Seizures and Sentencings

Federal authorities seized over $6 million in assets connected to the fraud scheme, according to the IRS. The seized property included $1.3 million in cash, a 2021 Rolls-Royce Cullinan luxury SUV, a 2021 Chevrolet Corvette, a 2020 Chevrolet Silverado pickup truck, and real estate holdings.

Johnson pleaded guilty in August 2025 to conspiracy to commit healthcare fraud, including making and receiving illegal payments, creating materially false documents, and failing to file tax returns, as reported by the Goldsboro Daily News. She was sentenced on February 24, 2026, to six years in federal prison and ordered to pay $15,286,912.91 in restitution to North Carolina Medicaid.

Super pleaded guilty to conspiracy to pay illegal kickbacks, healthcare fraud, document fraud, and tax violations. She received a six-year sentence on January 6, 2026, and was ordered to pay $15,286,912.91 to Medicaid plus $373,810 to the Internal Revenue Service, according to Attorney General Jackson's announcement.

Brandon Sims pleaded guilty to failing to file federal tax returns while receiving millions in illegal proceeds. He was sentenced to 30 months in prison and ordered to pay over $12 million in restitution, as reported by federal prosecutors.

Kimberly Sims pleaded guilty to the same charges as her mother and received a two-year sentence on March 2, 2026. She was ordered to pay $1,845,276.95 in Medicaid restitution and $207,383 to the IRS, according to the North Carolina Department of Justice.

Corporate Penalties

Life Touch LLC was ordered to permanently dissolve operations and pay a $15 million fine to the federal government, according to Attorney General Jackson's office. The company was also sentenced to five years of probation and ordered to repay $12,762,511.30 to North Carolina Medicaid.

Federal healthcare fraud laws prohibit paying or receiving anything of value to induce patient referrals for services covered by federal healthcare programs. Medicaid fraud diverts taxpayer resources intended to provide healthcare for vulnerable populations and undermines the integrity of public health programs.

The investigation was conducted by the FBI, IRS Criminal Investigation, North Carolina Medicaid Investigations Division, and the North Carolina Attorney General's Medicaid Investigations Division. Assistant U.S. Attorneys and North Carolina Assistant Attorneys General prosecuted the case.

Resources for Families

Families concerned about potential fraud or abuse in healthcare facilities can contact the North Carolina Medicaid Fraud Control Unit or file complaints with state regulatory authorities. The National Long-Term Care Ombudsman Resource Center provides assistance at 1-800-677-1116, and additional resources are available at ltcombudsman.org.

Suspected Medicaid fraud can be reported to the North Carolina Department of Health and Human Services Office of the Inspector General. Federal healthcare fraud can also be reported to the U.S. Department of Health and Human Services Office of Inspector General through their hotline at 1-800-HHS-TIPS.

Sources

This article is based on reporting from external news sources. NursingHomeNews.org enriches news coverage with proprietary CMS inspection data and facility history.

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Sources: This article is based on reporting from external news sources, enriched with federal CMS inspection and facility data where available.

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Last verified: March 23, 2026 | Learn more about our methodology

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