Alabama Provider Pays $300,000 to Resolve False Claims as Part of 2026 National Health Care Fraud Takedown
Phenix City, AL – In a shocking revelation, New Life Center for Change, Inc., doing business as Teen University, and its owner, Alfonza Smith, 72, of Smiths Station, Alabama, have agreed to pay $300,000 to resolve allegations that they submitted false claims to the Alabama Medicaid Agency.
According to the government, the Phenix City-based provider billed Alabama Medicaid for Basic Living Skills services for at-risk children that were not actually rendered.
“Protecting the integrity of Medicaid and ensuring that vulnerable children receive the services they are promised are among our highest priorities,” said United States Attorney Thomas Govan. “When providers bill for care that was never delivered, they waste taxpayer dollars and betray the trust placed in them. I want to thank the Alabama Medicaid Fraud Control Unit and the U.S. Department of Health & Human Services Office of Inspector General for their exceptional work and collaboration in helping us hold providers accountable and safeguard taxpayer funds.”
The settlement announced today is part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death.
The defendant, New Life Center for Change, Inc. and Alfonza Smith, will pay $300,000 to resolve the allegations of submitting false claims to the Alabama Medicaid Agency.
Mandatory Facts:
1. Defendant/respondent: New Life Center for Change, Inc. and Alfonza Smith
2. Exact criminal charges: Submitting false claims to the Alabama Medicaid Agency
3. City and state: Phenix City, AL
4. Exact date: Not specified in the source, but the settlement is part of the 2026 National Health Care Fraud Takedown
5. Sentence or outcome: New Life Center for Change, Inc. and Alfonza Smith have agreed to pay $300,000 to resolve the allegations
6. Dollar amounts: $300,000
Other notable facts include:
The National Health Care Fraud Takedown represents a new era in federal, state, and international cooperation to combat health care fraud, with cases in 56 federal districts and 45 U.S. states and territories, and 50 state Medicaid Fraud Control Units participating.
The Takedown involved the cutting-edge use of data analytics to target the worst actors, the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets, and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Columbia, District of Delaware, Northern District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Northern District of Iowa, Western District of Kentucky, District of Maryland, District of Massachusetts, Eastern District of Michigan, District of Minnesota, Eastern District of Missouri, District of Nebraska, District of Nevada, District of New Jersey, Eastern District of New York, Northern District of New York, Southern District of New York, Northern District of Ohio, Northern District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, District of Puerto Rico, Eastern District of Tennessee, Middle District of Tennessee, Western District of Tennessee, District of Utah, District of Vermont, Eastern District of Virginia, Western District of Virginia, District of Washington, Eastern District of Wisconsin, Western District of Wisconsin, and District of Wyoming.
Key Facts
- State: Alabama
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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