Montgomery, AL – Attorney General Steve Marshall announced Alabama’s participation in the 2026 National Healthcare Fraud Takedown, a nationwide enforcement effort led by the U.S. Department of Justice targeting fraud in government-funded healthcare programs.
The annual initiative brings together federal and state law enforcement agencies to investigate and prosecute healthcare fraud involving programs such as Medicaid. According to the Attorney General’s Office, this year’s operation resulted in charges and enforcement actions against hundreds of individuals and entities across the country, with Alabama contributing to the effort.
As part of Alabama’s involvement, the United States Attorney’s Office for the Middle District of Alabama reached a settlement on June 18, 2026, with Alfonza Smith, 72, of Smiths Station, owner of Teen University in Phenix City.
According to the Attorney General’s Office, Teen University contracted with the Alabama Department of Human Services to provide room, board, and services for children with emotional and behavioral management needs. Under the agreement, the facility was required to provide residents with two hours of Basic Living Skills instruction each day.
An investigation by the Attorney General’s Medicaid Fraud Control Unit, initiated after a referral from the Alabama Medicaid Agency’s Program Integrity Unit, found that the required services were not routinely being provided to residents.
The findings were referred to the U.S. Attorney’s Office for the Middle District of Alabama, which pursued the matter under the Federal False Claims Act. The case was resolved through a settlement in which Teen University, which is no longer a Medicaid provider, agreed 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 also thanked Assistant U.S. Attorney MaryLou Bowdre and members of the Attorney General’s Medicaid Fraud Control Unit for their work on the investigation and resolution of the case.
