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Tuesday, June 23, 2026

Alabama provider pays $300K to settle alleged false Medicaid claims - WSFA

MONTGOMERY, Ala. (WSFA) - U.S. Attorney Thomas Govan announced Tuesday that a $300,000 settlement was reached over allegations of false claims submitted to the Alabama Medicaid Agency.

The settlement involves New Life Center for Change Inc., which did business as Teen University and its owner Alfonza Smith 27, of Smiths Station.

Federal officials say the Phenix City-based provider billed Medicaid for basic living skills services for at-risk children that were not actually provided. The case is part of the Department of Justice’s 2026 National Care Fraud Takedown.

“Protecting the integrity of Medicaid and ensuring that vulnerable children receive the services they are promised are among our highest priorities,” Govan said. “When providers bill for care that was never delivered, they waste taxpayer dollars and betray the trust placed in them.”

Tuesday’s settlement was tied to a nationwide crackdown that led to charges against 455 defendants, including 90 doctors and other licensed medical professionals. Authorities say the cases involve health care fraud and opioid-related schemes totaling more than $6.5 billion in alleged false claims and serious patient harm, including deaths.

Officials also said the two-week operation included international arrests and returns to the U.S., including suspects located in Kyrenia,Estonia, and the Philippines, tied to alleged fraud schemes worth billions of dollars.

The Justice Department said the effort used data analytics to identify major...



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