Life Touch LLC Fraud: $12.7M Medicaid Scheme - NC

NEW BERN, NC — Four individuals have been sentenced to a combined total of more than 14 years in federal prison for orchestrating a fraudulent scheme that billed North Carolina Medicaid $12.7 million through fake substance abuse treatment facilities, according to the U.S. Attorney's Office for the Eastern District of North Carolina.

Federal judges handed down sentences on March 5, 2026, to Keke Komeko Johnson of Goldsboro, Francine Sims Super of Kinston, Brandon Eugene Sims of Manvel, Texas, and Kimberly Mable Sims of Snow Hill for their roles in the elaborate fraud operation. The case resulted in the permanent closure of the facilities, a $15 million fine against Life Touch LLC, and the seizure of more than $6 million in criminal proceeds, including cash, luxury vehicles, and real estate.

"This is shocking Minnesota-Somali-style fraud right here in North Carolina," said U.S. Attorney Ellis Boyle, as reported by the IRS Criminal Investigation division. "Here, these vultures exploited particularly susceptible drug abusers trying to recover their lives and dignity."

The Fraudulent Operation

According to court documents, the defendants operated Life Touch LLC, which presented itself as a substance abuse treatment facility with locations in Kinston and Goldsboro, along with 1st Choice Healthcare Services, a urine drug screening company. Between 2018 and 2023, Johnson and Super orchestrated payments exceeding $1 million in illegal kickbacks to Medicaid patients who were struggling with drug addiction, according to federal prosecutors.

The kickback payments were designed to incentivize patients to appear for costly substance abuse and laboratory services that Johnson subsequently billed to North Carolina Medicaid on behalf of both Life Touch and 1st Choice Healthcare Services. Kimberly Sims, who owned 1st Choice Healthcare and is the daughter of Francine Super, paid Medicaid kickbacks to Super and Johnson for fraudulent lab services purportedly ordered by Life Touch, according to the U.S. Attorney's Office.

Brandon Sims, who owned Life Touch while residing in Texas, received millions in illegal proceeds from the operation but failed to file or pay taxes on that income, as reported by federal authorities. The gift card kickback scheme resulted in more than $12.7 million in fraudulent billings submitted to the Medicaid program.

Deception and Cover-Up

Johnson and Super repeatedly deceived North Carolina Medicaid officials during multiple audits, according to court records. The pair falsified documents to make it appear to Eastpointe, a Managed Care Organization, that Life Touch had never paid illegal kickbacks to patients, when in fact they had been doing so systematically throughout the operation.

Johnson later provided false statements regarding the gift card payments during a civil investigation conducted by the Medicaid Investigations Division, according to prosecutors. At the time of these deceptive acts, Johnson served as the compliance officer for Life Touch, while Super held the position of office manager at the Kinston location.

Asset Seizures

During the investigation, federal agents seized and forfeited more than $6 million in assets, including cash, real estate, and other property, according to the IRS Criminal Investigation division. In November 2023, after learning of the criminal investigation, Brandon Sims withdrew more than $1 million in cash from a bank account and concealed it in a safe at his Texas residence, according to court documents.

Agents executed a search warrant at the Texas home and seized $1.3 million in cash, along with a 2021 Rolls Royce Cullinan, a 2021 Chevrolet Corvette, and a 2020 Chevrolet Silverado, as reported by federal authorities. Agents seized millions more in additional real property connected to the scheme.

Federal Sentences

The federal judge sentenced Johnson, who served as the company's Compliance Director, to six years in federal prison and ordered her to pay $15,286,912.91 in restitution to North Carolina Medicaid and $331,851 to the Internal Revenue Service. Johnson had pleaded guilty on August 14, 2025, to health care fraud conspiracy, including making and receiving illegal payments, making and using materially false documents, and failing to file a tax return.

Super, who managed the Kinston office, received a six-year federal prison sentence and was ordered to pay $15,286,912.91 in restitution to North Carolina Medicaid and $373,810 to the IRS, according to court records. She had previously pleaded guilty to conspiracy to pay illegal kickbacks, healthcare fraud, making and using materially false documents, and failure to file a tax return.

Kimberly Sims was sentenced to two years in federal prison and ordered to pay $1,845,276.95 in restitution to North Carolina Medicaid and $207,383 to the IRS. She had pleaded guilty to conspiracy to paying illegal kickbacks, healthcare fraud, making and using materially false documents, and filing a false tax return, according to prosecutors.

Life Touch LLC was ordered to pay a $15 million fine, dissolve its operations, serve five years of probation, and repay $12,762,511.30 in restitution to the North Carolina Medicaid program. Brandon Sims, the owner, received a sentence of two and a half years in federal prison and was ordered to pay $1,892,919.40 in restitution to the IRS. He also forfeited all traceable proceeds from the Life Touch scheme to the United States government.

Regulatory Context

Federal anti-kickback statutes prohibit healthcare providers from offering or paying any remuneration to induce patient referrals or to generate business involving services reimbursable by federal healthcare programs. Violations of these statutes can result in criminal prosecution, exclusion from federal healthcare programs, and substantial civil monetary penalties.

The Medicaid program, jointly funded by federal and state governments, provides healthcare coverage to low-income individuals, including those seeking substance abuse treatment services. Fraudulent billing schemes undermine the integrity of these programs and divert taxpayer funds from legitimate patient care.

Resources for Families

Families seeking information about substance abuse treatment facilities or concerned about potential fraud should contact their state Medicaid office or the Office of Inspector General's fraud hotline at 1-800-HHS-TIPS (1-800-447-8477).

The National Long-Term Care Ombudsman Resource Center can be reached at 1-800-677-1116 for assistance with healthcare facility concerns. Additional resources are available at https://ltcombudsman.org.

Anyone with information about potential healthcare fraud should contact the U.S. Department of Health and Human Services Office of Inspector General or their local FBI field office.