MONTGOMERY, AL — The Alabama Attorney General’s Office participated in the 2026 National Healthcare Fraud Takedown, a nationwide law enforcement initiative targeting fraud involving government-funded healthcare programs.
The annual effort is coordinated by the U.S. Department of Justice and brings together federal and state agencies to investigate healthcare fraud and protect funds associated with programs including Medicaid.
According to Alabama Attorney General Steve Marshall’s office, this year’s initiative resulted in charges and other enforcement actions involving hundreds of individuals and entities nationwide. Alabama’s participation included a case involving Teen University, a former Medicaid provider located in Tuskegee.
On June 18, 2026, the U.S. Attorney’s Office for the Middle District of Alabama reached a settlement with Alfonza Smith, 72, of Smiths Station, owner of Teen University.
Teen University had contracted with the Alabama Department of Human Services to provide room, board and services to children with emotional and behavioral management needs. Under the contract, the organization agreed to provide two hours of Basic Living Skills services per resident each day.
An investigation by the Alabama Attorney General’s Medicaid Fraud Control Unit, initiated following a referral from the Alabama Medicaid Agency’s Program Integrity Unit, found that the required two hours of Basic Living Skills were not routinely provided to residents, according to the Attorney General’s Office.
The Medicaid Fraud Control Unit referred its findings to the U.S. Attorney’s Office, resulting in a lawsuit under the federal False Claims Act.
The matter was resolved with Teen University, which is no longer a Medicaid provider, agreeing to repay $300,000 to the Alabama Medicaid 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,” Marshall said. “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.”
Marshall thanked Assistant U.S. Attorney MaryLou Bowdre and members of the Attorney General’s Medicaid Fraud Control Unit for their work on the case.
