AG Marshall secures $300,000 settlement in National Healthcare Fraud Takedown
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Special to the News
On Wednesday Attorney General Steve Marshall announced his office was a proud participant in the 2026 National Healthcare Fraud Takedown – one of the most significant annual law enforcement actions in the country targeting healthcare fraud.
Initiated and coordinated by the U.S. Department of Justice, the National Healthcare Fraud Takedown brings together federal and state partners across the nation in a unified effort to root out fraud in government-funded healthcare programs, protect taxpayer dollars and safeguard the integrity of programs like Medicaid that millions of Americans depend on.
This year’s Takedown resulted in charges and actions against hundreds of individuals and entities nationwide, and Alabama was an active contributor to that effort.
As part of the 2026 National Healthcare Fraud Takedown, on June 18, the United States Attorney’s Office for the Middle District of Alabama, located in Montgomery, reached a settlement with Alfonza Smith, 72, of Smiths Station. Smith is the owner of Teen University, located in Phenix City.
Smith contracted with the Alabama Department of Human Services to provide room, board and services to children with emotional and/or behavioral management problems. Under the contract, Teen University agreed to provide two hours of Basic Living Skills per resident per day.
An investigation conducted by the Attorney General’s Medicaid Fraud Control Unit, following a referral from the Alabama Medicaid Agency’s Program Integrity Unit, determined that the required two hours of Basic Living Skills were not being routinely provided to residents.
The Medicaid Fraud Control Unit referred its findings to the U.S. Attorney’s Office, and a Federal False Claims Act lawsuit was initiated. The matter was resolved with Teen University, which is no longer a Medicaid provider, agreeing to repay $300,000 to the agency.
“The National Healthcare Fraud Takedown exists because fraud in government healthcare programs is a serious, ongoing threat. When providers take taxpayer money without delivering the services they promised, we will find them, and there will be consequences,” said Attorney General Marshall. “We will continue to pursue those who defraud government healthcare programs, and we are proud to stand alongside our federal partners in this important national effort.”
Attorney General Marshall thanked Assistant U.S. Attorney MaryLou Bowdre and the staff of his Medicaid Fraud Control Unit for their efforts in bringing this matter to a successful conclusion.