RICHMOND COUPLE SENTENCED TO FEDERAL PRISON FOR NEARLY $1 MILLION MEDICAID FRAUD SCHEME INVOLVING MENTAL HEALTH SERVICES

RICHMOND, VIRGINIA — A Richmond couple who operated a mental health counseling agency was sentenced to federal prison on November 10, 2026, for conspiring to defraud Virginia’s Medicaid program through fraudulent billing practices involving services that were never provided. Erica Jackson, 39, received a four-year prison sentence, while her husband, Jason Jackson, 40, was sentenced to six months. The scheme involved nearly $1 million in improper Medicaid billing and generated proceeds used to finance luxury vehicles, business investments, and residential expenses.

According to federal court documents, the couple established Live 4 Life, Inc., in 2012 to provide mental health services to Medicaid recipients through two programs: Mental Health Skill Building (MHSB) and Intensive In-Home Services (IIH). These programs provide support to eligible individuals requiring assistance with mental health management and daily functioning. Erica Jackson oversaw the agency’s daily operations, staff training, regulatory compliance, and clinical supervision, while Jason Jackson maintained sole responsibility for submitting reimbursement claims to Medicaid.

Beginning in January 2019, the couple conspired with agency employees to submit claims for services that had not been performed. Erica directed Qualified Mental Health Professionals (QMHPs) to record brief interactions with clients as one or more hours of counseling or support services, allowing the agency to collect reimbursement for substantially more treatment time than employees had actually provided.

Investigators also determined that Live 4 Life engaged in overlapping billing practices involving multiple Medicaid recipients. Employees were directed to document services for two or more clients during the same time periods, including instances involving siblings enrolled in the Intensive In-Home Services program. The agency routinely submitted separate claims for purported individual services delivered simultaneously, despite the billing records representing treatment that had not occurred as documented.

Additional fraudulent claims involved Mental Health Skill Building progress notes showing employees providing services to different clients at locations miles apart during overlapping hours. These records falsely documented the delivery of treatment that could not have occurred within the reported time frames. The overlapping service records formed part of the fraudulent billing practices described in the federal court documents.

The couple expanded the fraud by submitting additional Medicaid claims beyond the already inflated hours recorded by their employees. According to federal court documents, Erica and Jason billed Medicaid for treatment time that exceeded even the fraudulent service records prepared by the agency’s mental health professionals, further increasing the amount improperly billed to the government-funded healthcare program.

According to federal court documents, the Jacksons used proceeds from the fraudulent billing scheme to finance several major personal expenditures. They purchased luxury automobiles, including a Maserati GranTurismo and a BMW 750Li, invested money in other business ventures operated by Jason, including two vegan restaurants that ultimately failed, and made more than $120,000 in lease payments for their Richmond residence.

The case illustrates how fraudulent billing within behavioral healthcare programs can divert public funds intended to support individuals requiring legitimate mental health services. The scheme exploited reimbursement procedures dependent on accurate treatment records, service durations, and professional documentation. By manipulating those records and submitting claims for nonexistent services, the couple obtained payments that were not supported by actual patient care.

Senior U.S. District Judge John A. Gibney Jr. imposed the sentences following the couple’s federal prosecution for conspiracy to commit healthcare fraud. Theophani K. Stamos, First Assistant U.S. Attorney for the Eastern District of Virginia, and FBI Richmond Special Agent in Charge Ian Kaufmann announced the sentencing. Assistant U.S. Attorney Robert S. Day prosecuted the case.

The prosecution is part of the Justice Department’s broader federal fraud enforcement efforts, including the National Fraud Enforcement Division established in April 2026 and the federal initiative focused on identifying fraud, waste, and abuse involving government benefit programs. The FBI’s Richmond Field Office participated in the investigation into the Medicaid fraud scheme.

There is no parole in the federal prison system.

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