Over $12 Million Medicaid Fraud Scheme Leads to 14 Years of Prison for Substance Abuse Facility, Owner, Compliance Officer, and Office Manager

NEW BERN, N.C. - A federal judge has handed down more than 14 years in federal prison to participants in a $12.7 Million Medicaid fraud scheme that paid more than $1 Million in kickbacks to drug addict patients. The case also resulted in the permanent closure of the fake substance abuse facility that carried out the crime, a $15 Million dollar fine, and the seizure of more than $6 Million in criminal proceeds, including cash, cars, and homes.

"This is shocking Minnesota-Somali-style fraud right here in North Carolina. For too long, government has allowed grifters to steal taxpayer dollars with impunity. Here, these vultures exploited particularly susceptible drug abusers trying to recover their lives and dignity. Shameful abuse, no remorse. They better learn, and everyone should get the message. Cheaters. Never. Win." said U.S. Attorney Ellis Boyle.

According to court documents, 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 purported substance abuse facility operating in Kinston and Goldsboro, and 1^st Choice Healthcare Services, a urine drug screening company. Between 2018 and 2023, Inmates Johnson and Super oversaw payments of more than $1 Million in illegal kickbacks to Life Touch's Medicaid patients, who were drug users. They paid these kickbacks to lure patients to show up for costly substance abuse and lab services that Inmate Johnson billed to Medicaid on behalf of Life Touch and 1^st Choice. Inmate Sims, Inmate Super's daughter, owned 1^st Choice Healthcare, and paid Medicaid kickbacks to Inmates Super and Johnson for fake lab services ordered by Life Touch, LLC. Meanwhile, Inmate Brandon Sims, who owned Life Touch and resided in Texas, received Millions in illegal proceeds from the Life Touch operation, but failed to file or pay taxes on that money. The gift card kickback scheme resulted in more than $12.7 Million fake billings to the Medicaid program.

Inmates Johnson and Super deceived the North Carolina Medicaid in multiple audits. They repeatedly lied and falsified documents to make it appear to Eastpointe, a Managed Care Organization, that Life Touch never paid illegal kickbacks to patients when, in fact, they did. Inmate Johnson later lied again regarding the gift cards during a civil investigation conducted by the Medicaid Investigations Division. At the time of these lies, Inmate Johnson served as the compliance officer for Life Touch, and Inmate Super served as the office manager in Kinston.

During the investigation, federal agents seized and forfeited more than $6 Million in assets in the form of cash, real estate, and other assets. In November 2023, after becoming aware of the criminal investigation, Inmate Brandon Sims withdrew more than $1 Million in cash from a bank account, hiding it in a safe at his Texas home. Agents executed a search warrant and seized $1.3 million in cash, a 2021 Rolls Royce Cullinan, a 2021 Chevrolet Corvette, and a 2020 Chevrolet Silverado. Agents seized Millions more in other real property.

The Judge sentenced Inmate Johnson, the company's "Compliance Director," to six years in federal prison and to pay $15,286,912.91 in restitution to North Carolina Medicaid and $331,851.00 to the IRS. On August 14, 2025, Inmate Johnson pleaded guilty to a health care fraud conspiracy, including making and receiving illegal payments, making and using materially false documents, and failing to file a tax return.

The Judge sentenced Inmate Super, the "Kinston office manager," to six years in federal prison, and to pay $15,286,912.91 in restitution to North Carolina Medicaid and $373,810.00 to the IRS. She previously pleaded guilty to conspiracy to pay illegal kickbacks, healthcare fraud, and making and using materially false documents. She also pleaded guilty to failure to file a tax return.

The Judge sentenced Inmate Kimberly Sims to two years in federal prison and to pay $1,845,276.95 in restitution to North Carolina Medicaid and $207,383.00 to the IRS. She previously pleaded guilty to a conspiracy to paying illegal kickbacks, healthcare fraud, making and using materially false documents, and filing a false tax return.

The Judge sentenced Life Touch, LLC, to pay a $15 Million fine, to dissolve, and serve five years of probation and repay $12,762,511.30 in restitution to the North Carolina Medicaid program. Life Touch, LLC, previously pleaded guilty to health care fraud, and the owner, Inmate Brandon Sims pleaded guilty to failing to file federal tax returns. The Judge sentenced Inmate Brandon Sims to two and a half years and six months in federal prison, and to pay $1,892,919.40 in restitution to the IRS. Inmate Brandon Sims also forfeit all traceable proceeds of the Life Touch scheme to the United States.

"Healthcare Fraud robs American taxpayers and betrays the very programs meant to protect our most vulnerable citizens. In this case, more than $12 million was stolen by these defendants directly from those who need it most," said Reid Davis, the FBI Special Agent in Charge North Carolina. "These defendants now face more than 170 months in federal prison, over $30 million in restitution to North Carolina Medicaid, and a $15 million fine. This outcome sends a clear message: those who defraud public healthcare programs will be held accountable."

"Fraud against our healthcare and tax systems is a crime and betrays public trust," said Donald "Trey" Eakins, Special Agent in Charge of IRS Criminal Investigation's Charlotte Field Office. "Tax evasion depletes resources intended for those in need and compromises our communities. IRS-CI special agents, in collaboration with the U.S. Attorney's Office and other partners, will continue to target those who exploit federal programs for personal gain, ensuring taxpayer funds are protected."

"These defendants orchestrated an egregious scheme involving illegal kickbacks, placing greed above patient care. Fraudulent operations like this undermine the availability of federal health care program funds intended to support millions of beneficiaries," said Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "Together with our law enforcement partners, HHS-OIG will continue to safeguard the integrity of Medicaid and other federally funded health care programs."

Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The FBI, IRS, U.S. Department of Health and Human Services-OIG, and the North Carolina AG's Office - Medicaid Investigations Division investigated the case, and Assistant U.S. Attorney William M. Gilmore and Special Assistant U.S. Attorney Tasha Gardner prosecuted the case.

A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North CarolinaLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. or on PACERLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. by searching for Case No. 4:25-CR-00025-FL-1, 4:25-CR-00025-FL-2 and Case No. 4:25-CR-00027-FL-1.